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Compañía Española de Financiación del Desarrollo, COFIDES, S.A., S.M.E.
3
Activity Report 17
CONTENTS
Foreword 4
Letter from the Chairman 10
Milestones in 2017 12
Board of Directors 16
Steering Committee 18
COFIDES Business History Map 20
Investment Portfolio on 31/12/2017 22
Selection of Investment Projects 42
Staff Organisation Chart 54
Management Report 58
Financial Statements 76
01
Foreword
6
A R 2017
INTRODUCTION
COFIDES was founded in 1988 with state and private capital with the purpose
of co-financing productive investments involving Spanish interests in emerging
or developing countries. In addition to its own resources, COFIDES manages two
state funds: The Fund for Foreign Investment (FIEX) and the Fund for SME Foreign
Investment Operations (FONPYME). These resources can be used to finance projects
in any country in the world to further the internationalisation of the Spanish economy
and its enterprises. Both funds are affiliated with the Ministry of Economy, Industry
and Competitiveness through the State Secretariat for Trade.
COFIDES supports the Ministry of Foreign Affairs and Cooperation through the
management of the Development Promotion Fund (FONPRODE) in reimbursable
funding operations and is an accredited entity for the management of the budget of
the European Union (Blending facilities and Delegated Cooperation).
The COFIDES public shareholders include ICEX España Exportación e Inversiones,
Instituto de Crédito Oficial (ICO) and Empresa Nacional de Innovación (ENISA),
which accounts for 53.68% of the share capital. The remaining 46.32% of the capital
is held privately, specifically by four financial institutions, such as Banco Bilbao
Vizcaya Argentaria (BBVA), Banco Santander, Banco de Sabadell and CAF-Banco de
Desarrollo de América Latina.
COFIDES MISSION:
COFIDES mission is to promote, through its own financial resources and the funds
it manages, the internationalisation of Spanish enterprises, preferably in developing
countries but also in developed countries regarded as priority targets by Spain's
economic and trade authorities.
Also, and considering its specific activity, the Company is also called upon to contribute
to Spanish consolidation and economic growth, as well as fostering development in
those countries targeted by COFIDES-backed investment.
.
7
Activity Report 17
COFIDES VISION:
The vision of COFIDES includes being the reference public-private funding vehicle of
Spain's Economic and Commercial Administration for direct foreign investment and
consequently a model for Spanish public-private venture capital abroad.
COFIDES VALUES:
› COFIDES additionally constitutes a distinctive value which can primarily be
attributed to the flexibility and versatility of the unusual financial support afforded
by the Company, which is not readily found in the market. Its adaptation to
each project and financial needs of each sponsor enables it to provide generous
maturities and grace periods. It has the potential to provide institutional support
for the investment projects financed and has the 'personality' as a temporary
financial partner to stand by the investor without intervening in everyday project
management.
› The sustainability of the resources and funds managed by COFIDES enables the
company to maintain its investment capacity over time and to continue to provide its
services to a growing number of businesses.
› Responsible financing is based on compliance with a code of ethics and a series
of guiding principles that in turn rest on values such as respect for human rights,
social, environmental and economic sustainability of the projects being financed, a
commitment to long-term economic development for local communities, awareness
of the positive impact of investment on target-country development, and the public
circulation of information on antibribery and anticorruption agreements in international
trade.
› The courteous, high quality service provided by the COFIDES team is one of the
mainstays of the company's relationship with its stakeholders. COFIDES, which aspires
to business excellence, has adopted a number of working guidelines in the area of
corporate responsibility that ensure on-going improvements in its working methods
and the quality of its services.
› Transparency, as an instrument to provide accurate and reliable information about its
own market activities, its shareholders as well as the company in general, ensuring the
demands of confidentiality are securely met in the management of its business.
Additionality: Flexibility and
Adaptation
Sustainability
Responsible
Financing
High Quality
Service
Transparency
8
A R 2017
EXPERIENCE
COFIDES has approved a total of 912 investment projects in 88 countries, where it has committed resources
amounting to over €3,000 million for a total investment of over €34,900 million.
On 31st December 2017, the total portfolio of projects managed by COFIDES rose to €938 million.
COFIDES can finance viable private investment projects, such as the creation of new companies, as well as the
acquisition or expansion of existing companies. To qualify, projects must involve assets that require medium
to long-term financing, be undertaken abroad and involve some element of Spanish interest. COFIDES also
finances commercial deployments of Spanish companies overseas.
COFIDES can also provide financing to the head offices of Spanish companies with international activity.
9
Activity Report 17
PRODUCTS
COFIDES offers the following range of financial products for viable private investment projects:
Medium and long-term, subordinated, mezzanine and joint venture loans for host country companies
Shareholding in the Spanish companies for their international activities
03
Share capital holdings of host country companies
01Medium and long-term loans for host country companies
02
Medium and long-term loans for Spanish investors
04
05Multi-project loans
06
10
The year 2017 demonstrated once again the
strength and dynamism of the COFIDES
business model. With a committed
portfolio of investments already reaching 1,051,770,000
euros, we can announce another year of growth based on solid
endeavour, innovation and teamwork. 2017 was therefore a
key year for the Company, a year in which it consolidated its
position and growth.
At this juncture, two years on from its implementation, we can see that a good degree of progress
has been made as regards the Strategic Plan. Keeping with the objectives set therein, COFIDES
has continued its strong support for small and medium-sized Spanish enterprises in their growth
abroad, and in 2017, it achieved the maximum annual approvals and executions of projects
advanced by SMEs.
Furthermore, as a result of continuous effort and dynamism, COFIDES implemented a vigorous
disbursement drive of close to 200 million euros, with 2017 being one of the top three most
successful fiscal years in the history of the Company.
COFIDES has once more shown itself to be a leader and reference point as regards support for
Foreign Direct Investment, helping make Spanish companies stronger, more robust and more
competitive, resulting in development and employment in both foreign and home regions.
This has all been made possible by way of an increase in proactive dealings with our clients, the
strengthening of the market presence in Autonomous Communities and intensive institutional and
promotional activity.
In recent years, COFIDES has deployed a strategy based on diversification, supporting in a precise
manner its mission of promoting development. Thus, in addition to deepening its support for
FONPRODE in reimbursable operations, in 2017 COFIDES was established as an accredited entity
for the indirect management of the community budget by EU-Blending, with the presentation of
its first operation within the framework of the thematically-focused facility AgriFI. The year also saw
COFIDES moving on to the second phase of the Green Climate Fund accreditation process, and so
our hard work and steady progress will soon mean that we will become the first Spanish financing
institution accredited to this Fund.
11
Letter from the Chairman
02 COFIDES involvement and membership of the European Development Finance Institutions (EDFI)
is particularly important to us, and so it is very gratifying that this year it became part of the Board
of Directors. This, as well as representing an appreciation of our professionalism and experience,
will allow COFIDES to be at the heart of the main and most direct decision-making areas of the
association.
I would also like to highlight COFIDES continuing commitment to cutting-edge technology and
innovation in the field of digitalisation. The Company has been able to change and evolve and is
engaged in the implementation of its Strategic Plan for Digital Transformation, which will offer our
clients, shareholders and suppliers a streamlined and innovative service.
These significant achievements lay the groundwork for us to continue to shape a strategy of
success in the coming years which is based on strength, solid and responsible growth and a firm
commitment to contributing to development.
All this has been possible thanks to the excellent team of staff that makes up COFIDES, the support
of our shareholders and clients and the collaboration of the State Secretariat for Trade - Ministry
of Economy, Industry and Competitiveness. I thank you all sincerely for your dedication and work.
I invite you to learn more about the work done by COFIDES in 2017 over the course of these
pages, an excellent way for you to learn more about what it is that we do, how we operate and the
challenges that the future holds for us.
Salvador Marín Hernández
Chairman and CEO
12
03
13
Milestones of 2017
14
A R 2017
MILESTONES OF 2017
› The committed investment portfolio amounts to €1,051.77 million. The committed investment portfolio
amounts to the total portfolio plus the amount committed and not yet disbursed.
› The total managed investments portfolio rose to €937.99 euros, reaching the highest level since COFIDES
was created. The total portfolio is obtained from the difference between the amount actually disbursed and
those already reimbursed.
› The highest annual approvals by number of projects promoted by SMEs, with 39 SME projects approved in
2017 and 60% of the total projects approved in the year.
› The highest number of formalisations by number of projects promoted by SMEs has been reached, with
32 SME projects formalised in 2017, which represents 60% of the total number of projects formalised in the
year.
› The highest income in history for operating activities (recurring income) which rose to €23.47 million.
› COFIDES was incorporated as a member of the Board of Directors at EDFI, therefore positioning itself as
priority stakeholder in taking decisions which guide the strategy of the European Bilateral Development
Finance Institutions.
› COFIDES officially presented its first operation in the thematic facility AgriFI framework, strengthening its
role as accredited entity for indirect management of the EU budget under the Blending facilities framework.
› COFIDES received the “United Nations 2017 prize for
Promoting Investment in Sustainable Development Goals
(ODS)”, awarded by the United Nations Conference on
Trade and Development (UNCTAD).
Presentation of the UNCTAD Award
15
Activity Report 17
2017 Headline Figures
Total investment portfolio:
€937.99m
Committed Portfolio:
€1051.77m
Approved projects led by
SMEs:
60%
Amount of approved resources:
€216.84m
Record of approval ofSME projects:
39
Number of approved projects:
65
Outlays:
€197.50m
820
840
860
880
900
920
940
2013 2015 2017
872.53
926.96937.99
Evolución de cartera total 2013 -2017En millones de euros
60 %40 %
Distribución del número de proyectos aprobados en 2017
PYME 60%
No PYME 40%60 %
40 %
Distribución del número de proyectos aprobados en 2017
PYME 60%
No PYME 40%
Evolution of the portfolio total 2013-2017(€ million)
Distribution of approved projects in 2017
16
A R 2017
04 Board of Directors
17
Activity Report 17
Board of Directors
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Mr. Salvador Marín Hernández
BOARD MEMBERS*
Ms. Rosario Casero Echéverri
Mr. José Corral Vallespín
Mr. Miguel Darío Otero Romaní
Mr. Javier Estévez Zurita
Mr. Alberto Gómez Nicolau
Mr. David Noguera Ballús
Mr. Juan Ignacio Moratinos Alonso
Mr. Borja Rengifo Llorens
Ms. Amor Suárez Muñoz
Mr. Pablo de la Torre Rodríguez
Mr. Óscar Vélez de Mendizábal Castillo
SECRETARY, NON-MEMBER AND LEGAL COUNSEL
Ms. Ana Victoria Fernández Sáinz de la Maza
Invited to the Board of Directors: CAF representative,
Mr. Guillermo Fernández de Soto
During 2017 the following people resigned from the Board of Directors:
Mr. Francisco Javier Puig Asensio
Mr. Antonio Bandrés Cajal
Mr. Roberto Pagán Díaz
Mr. José Antonio Zamora Rodríguez
*April 2018
18
A R 2017
Steering Committee
05
Activity Report 17
19
Steering Committee
Chairman and Chief Executive Officer Mr. Salvador Marín Hernández
General ManagerMr. Luis de Fuentes Losada
General CounselMs. Ana Victoria Fernández Sáinz de la Maza
Deputy Manager, Marketing and Business DevelopmentMs. Ana Cebrián Parrondo
Deputy Manager, Control, Internal Audit and QualityMs. María Victoria de Luis Durán
Deputy Manager, Corporate and SustainabilityMr. Fernando Aceña Moreno
Deputy Manager, Economy and FinanceMr. Héctor Turiel Valdés
Deputy Manager, Financing for Development and European AffairsMs. María Vidales Picazo
Deputy Manager, Investment and Portfolio ManagementMr. Miguel Ángel Ladero Santos
Deputy Manager, RiskMs. Consuelo Díaz Martínez
20
A R 2017
+ 35 projects 10 to 35 projects 5 to 9 projects 1 to 4 projects other eligible countries
MexicoBrazilChileArgentinaUnited StatesColombiaPeruDominican RepublicPanamaEl SalvadorUruguayCanadaCubaEcuadorHondurasParaguayNicaraguaVenezuelaJamaica
12451343231242011
86554433221
America
MoroccoSouth AfricaKenyaAlgeriaSenegalNigeriaTanzaniaAngolaMauritiusIvory CoastGhanaNamibiaTunisiaUgandaBeninEgyptGuinea BissauMaliMozambiqueNigerDR CongoTogoZambia
249865443322222111111111
Africa
ChinaIndiaUnited Arab EmiratesThailandJordanSaudi ArabiaPhilippinesIndonesiaIranKazakhstanKuwaitMalaysiaMongoliaPakistanQatar
Australia
6628
3321111111111
1
RomaniaPolandCzech RepublicPortugalUnited KingdomHungaryTurkeyItalyRussiaFranceGermanySlovakiaThe NetherlandsBulgariaUkraineBelgiumBielorussiaSloveniaLetoniaLithuaniaMontenegroSwitzerland
1918131210
99877644221111111
Europe
Asia
Oceania
21
Activity Report 17
+ 35 projects 10 to 35 projects 5 to 9 projects 1 to 4 projects other eligible countries
MexicoBrazilChileArgentinaUnited StatesColombiaPeruDominican RepublicPanamaEl SalvadorUruguayCanadaCubaEcuadorHondurasParaguayNicaraguaVenezuelaJamaica
12451343231242011
86554433221
America
MoroccoSouth AfricaKenyaAlgeriaSenegalNigeriaTanzaniaAngolaMauritiusIvory CoastGhanaNamibiaTunisiaUgandaBeninEgyptGuinea BissauMaliMozambiqueNigerDR CongoTogoZambia
249865443322222111111111
Africa
ChinaIndiaUnited Arab EmiratesThailandJordanSaudi ArabiaPhilippinesIndonesiaIranKazakhstanKuwaitMalaysiaMongoliaPakistanQatar
Australia
6628
3321111111111
1
RomaniaPolandCzech RepublicPortugalUnited KingdomHungaryTurkeyItalyRussiaFranceGermanySlovakiaThe NetherlandsBulgariaUkraineBelgiumBielorussiaSloveniaLetoniaLithuaniaMontenegroSwitzerland
1918131210
99877644221111111
Europe
Asia
Oceania
COFIDES Business History Map
06
22
07
23
Investment Portfolio
24
A R 2017
AFRICA
COUNTRY SECTOR ACTIVITY
Angola Engineering Engineering services
Algeria Chemicals Manufacturing and distribution of pharmaceutical products
Algeria Energy Construction, operation and maintenance of solar thermal plant
Ivory Coast Energy Extension of a gas power station
Egypt Agri-food Manufacturing of easy-to-open caps
Ghana Financial sector Strengthening TIER II capital to expand the institution
Ghana Energy Increasing the capacity of a thermal power plant
Mauritius Services Preventive health in the workplace
Mauritius Agri-food Processing and distribution of different commodities
Kenya Financial sector Senior debt financing for financial operations
Kenya Financial sector Financing for SMEs and cooperatives
Kenya Energy Geothermal power plant
Kenya Energy Construction of a 310MW wind farm
Kenya Financial sector Subregional multilateral development bank
Kenya Energy Electricity generation
Morocco Services Online marketing consultancy
Morocco Capital goods Manufacturing of wires and cables for the automotive industry
Niger Telecommunications Mobile phone signal repeater towers
Nigeria Financial sector Financing for SMEs
Nigeria Chemicals Construction and operation of fertilizer plant
Nigeria Financial sector Contributing funds to financial institution for its SME expansion
Regional Financial sector Financing of investment projects
Regional Financial sector Financing of climate change mitigation and energy efficiency projects
South Africa Building materials Export of PVC pipes
Tanzania Energy Photovoltaic solar energy generation for own consumption
Tanzania Financial sector Financing for SMEs and business customers
Tanzania Services Airline
Uganda Energy Operation of a small hydro-electric power plant
Uganda Energy Construction and operation of a small hydro-electric power plant
25
Activity Report 17
AFRICA
PROJECT COMPANY EQUITY INSTRUMENTS
OTHER INSTRUMENTS (subordinated loans, variable rate loans or ordinary loans)
Impulso Angola
Arafarma Argelia
Solar Power Plant One
Azito Energie
Bemasa Egypt Joint Stock Company
Fidelity Bank
Takoradi International Company
Careworks Africa
ETC Group (ETG)
Chase Bank
Co-operative Bank of Kenya Limited
Or Power IV (Olkaria IV)
Lake Turkana Wind Power
PTA Bank
Rabai Power
Findasense Marruecos
Relats Maroc
Eaton Towers Niger Ltd.
Africa Finance Corporation (AFC)
Indorama Eleme Fertilizar & Chemicals Ltd (IEFCL)
Stanbic Bank
European Financing Partners
Interact Climate Change Facility
Molecor
Mobisol
NMB Tanzania
Precision Air Services
África EMS Mpanga
África EMS Nyamwamba
26
A R 2017
LATIN AMERICA AND THE CARIBBEAN
COUNTRY SECTOR ACTIVITY
Argentina Chemicals Modification of asphaltic bitumen
Argentina Financial sector Venture capital fund for local SMEs
Brazil Telecommunications Development and licensing of digital media applications
Brazil Capital goods Manufacturing of capital goods for industry
Brazil Energy Power transmission
Brazil Electrical and electronic products Manufacturing and distribution of electrical appliances
Brazil Engineering Facade and cladding engineering
Brazil Agri-food Construction and operation of breeding chicken farms
Brazil Services Customer service through contact centre
Brazil Capital goods Manufacturing of layered structures and assembly of aeronautical structures
Brazil Energy Photovoltaic solar plants
Brazil Building materials Sale and rental of auxiliary construction machinery
Brazil Environment Wind power generation
Brazil Transport infrastructures Motorway extension, operation, maintenance and management
Brazil Automotive sector Automotive components
Chile Agri-food Salmon fish farm
Chile Agri-food Production of metal packaging and caps
Chile Financial sector Fund for renewable-energy power plants
Chile Engineering Energy and ICT solutions
Chile Energy Commercial implementation, installation and maintenance of solar structures
Chile Agri-food Cap manufacturing and sale
Chile Agri-food Canning industry
Chile Building materials Formwork systems
Chile Transport infrastructures Acquisition of toll motorway license
Chile Services Intelligent mobile advertising for large media agencies
Colombia Services Installation and assembly of air conditioner, electricity, control and security
Colombia Services Communications agency
Colombia Transport infrastructures Motorway construction, renovation, operation and maintenance
Colombia Transport infrastructures Motorway construction, renovation, operation and maintenance
Colombia Services Customer service and contact centre
Colombia Other Foreign currency exchange offices
Colombia Services Document management software
Colombia Trade Eyewear and sunglasses
Colombia Chemicals Dental implants and prosthesis
Colombia Capital goods Horizontal and directional drilling machinery
Colombia Engineering Engineering, architecture and consulting services
Colombia Agri-food Production and distribution of gourmet coffee
Colombia Services Intelligent mobile advertising for large media agencies
Colombia Services Passenger transport by bus
Cuba Agri-food Food production for holiday resorts
Cuba Electronic products Assembly and distribution of electrical material and wiring
Cuba Construction Design and commercialisation of light-steel structures
27
Activity Report 17
LATIN AMERICA AND THE CARIBBEAN
PROJECT COMPANY EQUITY INSTRUMENTS
OTHER INSTRUMENTS (subordinated loans, variable rate loans or ordinary loans)
Desarrollos Internacionales Asfálticos Argentina
PYMAR
Agile Contents Brasil
ASSA Brasil
ATE IV - Sao Mateus Transmisora de Energia
CESDE Indústria y Comercial de Electrodomésticos
Inbobe Emprendimentos
Laboratorios Dr. Larrasa
Red Line Contact Center e Tecnología
SK10 Do Brasil Indústria Aerospacial
Sucursal Gransolar Desarrollo y Construcción (Brasil)
Ulma Andamies, Forma e Escoramentos
Ventos do Sul Energía
Viabahia Concessionaria de Rodovias
Zanini do Brasil
Acuinova Chile
Auxiliar Conservera America
Copihue Capital I Fondo de Inversión Privado
Gamma Solutions
Grupo Clavijo Chile
Industria Nacional de Envases
Inmuebles Cataluña
Montajes Alsina Ltda
Sociedad Acciona Concesiones Ruta 160
Tap Tap Advertising
Abantia Colombia
Apple Tree Communications Colombia
Autopistas del Noreste (Conexión Norte)
Concesión del Sisga
Econtact Col
Globocambio Foreign Exchange
InDenova
Opticalia Colombia
Phibo CAD CAM Colombia
Restitubo S.A.S. Colombia
Seg Ingeniería
Supracafé Colombia
Tap Tap Advertising
Transporte Trasloyola
Profood Service
Promael Suministros Eléctricos
Tecnología Constructiva
28
A R 2017
LATIN AMERICA AND THE CARIBBEAN
COUNTRY SECTOR ACTIVITY
Ecuador Engineering Energy and ICT solutions
Ecuador Agri-food Prawn aquaculture
Honduras Energy Photovoltaic solar energy power plants
Honduras Energy Wind farm
Jamaica Energy Electricity generation and distribution
Mexico Naval/Aeronautical/Rail Sector Metal components
Mexico Naval/Aeronautical/Rail Sector Metal components
Mexico Electrical and electronic products Industrial and urban electrical systems
Mexico Transport infrastructures Construction and license management
Mexico Transport infrastructures Construction and operation of roads
Mexico Engineering Prefabricated piping
Mexico Trade Network solutions and industrial networking
Mexico Services Telecommunications equipment repair services
Mexico Automotive sector Automotive components
Mexico Construction Concrete formwork
Mexico Hotel and catering business, tourism and entertainment
Gambling hall management
Mexico Automotive sector Manufacturing of tubular components
Mexico Chemicals Production and distribution of dermatological products
Mexico Automotive sector Manufacturing of coating paint and logistic solutions
Mexico Automotive sector Logistic project
Mexico Automotive sector Manufacturing of engine pipes
Mexico Services Business management software
Mexico Automotive sector Screw manufacturing
Mexico Automotive sector Manufacturing and logistic management of automotive components
Mexico Automotive sector Stamping, assembly and painting
Mexico Agri-food Production and sale of food ingredients and additives
Mexico Chemicals Technical calcium carbonate production plant
Mexico Automotive sector Manufacturing of injected plastic parts
Mexico Capital goods Manufacturing and sale of insulation and flexible tubes
Mexico Agri-food Meat industry equipment
Mexico Hotel and catering business, tourism and entertainment
Gambling hall management
Mexico Capital goods Irrigation systems
Mexico Environment Management and treatment of industrial waste
Mexico Energy Photovoltaic solar plants
Mexico Automotive sector Automotive components
Mexico Services Sale of geotextile products for agriculture
Mexico Capital goods Industrial machinery (bagging, palletising...)
Mexico Construction Auxiliary machinery for the construction sector
Mexico Automotive sector Manufacturing of decorative plastic parts
Multi-country: El Salvador, Brazil Chemicals Oral health products
Multi-country: Mexico, Ecuador Engineering Design and development of infrastructures, topographic surveys, etc.
Multi-country: Mexico, Turkey Plastics and by-products Manufacturing and sale of thermoplastic geomembranes
29
Activity Report 17
LATIN AMERICA AND THE CARIBBEAN
PROJECT COMPANY EQUITY INSTRUMENTS
OTHER INSTRUMENTS (subordinated loans, variable rate loans or ordinary loans)
Gamma Engineering
Promarisco
Terra Solar
Vientos de electrotecnia (Vesa)
Jamaica Public Services
Aernnova Componentes Aeronaúticos de México
Aernnova Estructuras Aeronaúticas de México
Aetech México
Autopista Urbana Norte
Concesionaria México
Cotinavec México
CTC Technology México
DeltaComGroup Ingeniería México
Ecenarro México
Encofrados Alsina México
Espectáculos Latinoamericanos Deportivos
Garay Componentes Tubulares
IFC Cantabria México
Itech Grupo
Logística Sesé México
MMM Autoparts Américas
Nexis IT Group
Panelfisa México
Pino Automotive México
Pintura Estampado y Montaje, CIE Celaya, CIE MATIC
Premium Ingredients México
Regio Mármol
Reiner Nafta
Relats Leon
Roser México
Sabia Corporación / Fantastic León
Siberline México
Sistemas Desarrollo Sustentables
Sucursal Gransolar Desarrollo y Construcción (México)
Systems & Manufacturing México
Tejidos Técnicos Mallatex
TMI Latam
Ulma Cimbras y Andamios de México
Walter Pack
Laboratorios Kin Centroamérica y Caribe
SEG México / SEG Sucursal Ecuador y Sodesegoy
Atarfil México / Atarfil Turkey
30
A R 2017
LATIN AMERICA AND THE CARIBBEAN
COUNTRY SECTOR ACTIVITY
Nicaragua Agri-food Extension of shrimp farming and processing facilities
Panama Services Sale of hardware, electronical and telecommunication equipment
Panama Energy Construction and operation of hydroelectric power station
Panama Energy Construction and operation of hydroelectric power station
Panama Energy Electricity generation and distribution
Panama Engineering Design and development of infrastructures, topographic surveys
Panama Infrastructures-Water Civil works, water treatment and construction
Paraguay Services Aircraft maintenance
Paraguay Engineering Design, calculation and technical assistance services in structural works
Peru Services Assembly and maintenance of facilities
Peru Transport infrastructures License for road construction and operation
Peru Services Work monitoring services
Peru Building materials Formwork systems
Peru Engineering Energy and ICT solutions
Peru Agri-food Production and sale of vegetable preserves
Peru Services Liquefied natural gas transport
Peru Energy Hydroelectric power plant
Peru Engineering Facade and cladding engineering
Peru Services Document management software
Peru Electrical and electronic products Manufacturing of lamps and lights
Peru Services Management consultancy and sub-contracting and work monitoring outsourcing
Peru Services Construction and management of telephone distribution centres
Peru Building materials Scaffolding acquisition and rental
Regional Financial sector Private equity fund for SMEs in Latin America
Dominican Republic Hotel and catering business Hotel and catering business training
Dominican Republic Agri-food Production and marketing of tropical fruits
Dominican Republic Trade Orthopaedics and traumatology products for medical and paramedical use
Dominican Republic Services Debit and credit card processing
Dominican Republic Services Municipal service management
Uruguay Agri-food Manufacturing and sale of artificial packaging
31
Activity Report 17
LATIN AMERICA AND THE CARIBBEAN
PROJECT COMPANY EQUITY INSTRUMENTS
OTHER INSTRUMENTS (subordinated loans, variable rate loans or ordinary loans)
Camanica, Camanica ZonaFranca, ZonaFranca Río Real
Crambo Latinoamérica
Electrón Investment (Proyecto 1)
Electrón Investment (Proyecto 2)
Hidroeléctrica San Lorenzo
Sondeos, Estructuras y Geotecnia Panamá
Viguecons Estévez Sucursal Panamá
Air Nostrum Technic América
Construcción Guamora Paraguay
Abantia Perú
Autopista del Norte
Clever Tecnología Perú
Encofrados Alsina del Perú
Gamma Engineering
Green Perú
Ham Criogénica Perú
Andean Power
Inbobe Perú
InDenova
Josfel Iluminación
Prevecon S.A.C.
Salesland Internacional
Sistemas Técnicos Auxiliares
Aureos Latin American Fund
C.S.H. del Mediterráneo
Eurofresh Dominicana
MCT República Dominicana
ProceCard
Tecvasa Internacional
Viscofan Uruguay
32
A R 2017
ASIA
COUNTRY SECTOR ACTIVITY
China Automotive sector Manufacturing of motorbike braking systems
China Automotive sector Automotive components
China Automotive sector Automotive components
China Automotive sector Cutting and stamping of automotive components
China Automotive sector Cutting and stamping of automotive components
China Automotive sector Large stamping
China Automotive sector Bearing production
China Automotive sector Manufacturing of springs and copper coils
China Metal-mechanical sector Manufacturing and distribution of taps
China Construction Production of amorphous silicon
China Services Digital signage
China Chemicals Manufacturing and sale of laryngoscopes
China Capital goods Machining centre with hight technology content
China Automotive sector Industrial textile finishing and coating
China Other Production and printing of paper bags
China Automotive sector Manufacturing of rubber components for the automotive sector and electrical appliances
China Automotive sector Machining of stainless steel parts
China Automotive sector Wheel rim production
Philippines Construction Concrete formwork
India Plastics and by-products Coat hanger production
India Other Sale and purchase of diamonds and manufacturing of jewellery
India Automotive sector Supply of car parts
India Automotive sector Manufacturing of car parts and accesories
India Agri-food Capital goods for the food industry
India Energy 80MW wind farm
India Agri-food Production and sale of food ingredients and additives
India Energy Solar thermal power plant
India Energy Construction and operation of a wind farm
India Automotive sector Manufacturing of metal parts and metal forming
India Metal-mechanical sector Wind turbine plant
India Energy Construction and maintenance of electric transmission lines
India Construction Frit manufacturing
India Automotive sector Manufacturing of decorative plastic parts
Indonesia Chemicals Fatty alcohol production plant
Mongolia Energy Wind farm
Pakistan Energy Wind power plant
33
Activity Report 17
ASIA
PROJECT COMPANY EQUITY INSTRUMENTS
OTHER INSTRUMENTS (subordinated loans, variable rate loans or ordinary loans)
Ciju Control Systems
Fagor Ederlan Auto Parts
Ficosa International Taicang
Gestamp Autocomponents (Dongguan)
Gestamp Autocomponents (Shenyang)
Gestamp Autocomponents (Kungshan)
Jiaxing Fersa Bearing
Kunshan RPK Spring
Ningbo Itcone Sanitary
Onyx Solar Energy
Playthe.net Hong Kong
Prodol Meditec
Shandong Ibarmia CNC Machine Manufacturing
Shanghai Coatex Technical Coating
Toybe Easy Asia
Wingroup Leisure and Sports Equipment
Yancheng Mingli Metal Products
Zanini (Changzhou) Autoparts
Alsina Formwork Southeast Asia Corporation
Erum Hangers
Euroshine Jewellery Works
Grupo Cosmos India
Industrias del Recambio India
Inoxpa India
Panama Wind Energy Godaveri
Premium Ingredients Food Services
Rajasthan Sun Technique Energy
ReNew Wind Energy (Rajasthan 3)
RPK India
Shrenik Industries
South East U.P. Power Transmission Company
Sterling Ceramics
Walter Pack Automotive Product India
PT Energi Sejahtera Mas
Mongolia Wind
Triconboston Consulting Corp.
34
A R 2017
CENTRAL AND EASTERN EUROPE, MIDDLE EAST AND CIS
COUNTRY SECTOR ACTIVITY
Saudi Arabia Building materials Construction of prefabricated rings for underground lines 4, 5 and 6
UAE Energy Photovoltaic solar plants
Slovakia Automotive sector Component stamping
Slovakia Automotive sector Plastic components for cars
Slovakia Automotive sector Metal casting for components and the automotive sector
Iran Chemicals Manufacturing and distribution of pharmaceutical products
Jordan Financial sector Foreign currency exchange service
Montenegro Energy Development, construction, connection and operation of wind farm
Poland Metal-mechanical sector Lighting products
Poland Chemicals Manufacturing and distribution of pharmaceutical products
Poland Capital goods Manufacturing and sale of electrical appliances
Poland Capital goods Counterweight manufacturing
Qatar Services Facilities and maintenance
Romania Agri-food Distillery construction
Romania Electrical and electronic products Body shop and stamping
Romania Automotive sector Automotive components
Romania Automotive sector Manufacturing of rubber and metal components
Romania Automotive sector Manufacturing of rubber products
Romania Automotive sector Manufacturing of motor vehicles
Russia Automotive sector Component stamping
Russia Agri-food Construction of a storehouse for capital goods of the food industry
Russia Agri-food Turkey meat processing plant
Turkey Energy Financing of 10-20MW renewable energy projects
Turkey Services Human Resource consulting
Turkey Healthcare sector Food security analysis
Turkey Energy Design, construction and operation of a wind farm
Ukraine Chemicals Manufacturing and distribution of pharmaceutical products
35
Activity Report 17
CENTRAL AND EASTERN EUROPE, MIDDLE EAST AND CIS
PROJECT COMPANY EQUITY INSTRUMENTS
OTHER INSTRUMENTS (subordinated loans, variable rate loans or ordinary loans)
Pacadar Arabia
Sucursal Gransolar Desarrollo y Construcción (EAU)
Esnasa Slovensko
Precision Process Technology Slovakia
SKC FOUNDRY
Arafarma Persa
Global Exchange Jordan
Krnovo Green Energy
Aga Light
Arafarma Polonia
Fagor Mastercook
Gallizo Polska
Tempo
Bioaldevin
CSC Transmetal
MMM Autoparts
SC Cauchometal Productos
SC Cikautxo Ro Rubber & Plastic
SC Indcar Bus Industries
Gestamp Severstal Kaluga y S.Petersburgo
Starinox
Tambovskaya Indeika
Bank Pozitif
Cátenon Turquía
Ekosmyrna
Eolos Rüzgar Enerjisi Oretim
Arafarma Ukranie
36
A R 2017
NORTH AMERICA
COUNTRY SECTOR ACTIVITY
Canada Metal-mechanical sector Machining and assembly of aluminium parts
USA Energy Ethanol production
USA Services Chemical lab for food, environment and agricultural analysis
USA Services Training and advising services for IT professionals
USA Energy Operation and maintenance of electricity grids and gas pipelines
USA Automotive sector Automotive components
USA Trade Manufacturing and sale of outdoor furniture
USA Services Event, exhibition and conference organization
USA Building materials Products and processes for surface finishing
USA Automotive sector Manufacturing of battery terminals and metal components
USA Naval/Aeronautical/Rail Sector Aircraft services and repairs
USA Services Training and advising services for IT professionals
USA Hotel and catering business Online distribution of tourist apartments
USA Electronic products Manufacturing of electronic products
USA Transport infrastructures Toll Motorway Acquisition
USA Engineering Pellet production
USA Engineering Electrical engineering for the iron and steel sector
USA Building materials Counterweight production plant
USA Services Digital consulting and online advertising
USA Automotive sector Tyre assembly
USA Services Voice-recognition services
37
Activity Report 17
NORTH AMERICA
PROJECT COMPANY EQUITY INSTRUMENTS
OTHER INSTRUMENTS (subordinated loans, variable rate loans or ordinary loans)
Tecalum Canadá
AB of Illinois & AB of Indiana
AGQ USA
B2T Training
Elecnor Hawkeye
Ficosa North America Corporation
Gandía Blasco USA
Global Events SF
Intrabond
MEK Van Wert
Navair USA
Netmind International
Only Apartments
P4Q USA
Pocahontas Parkway Operations
Prodesa North America Corporation
Russula Corporation
Sic Lazaro US
T2O Media
Truck and Wheel USA Corporation
Verbio Incorporated
38
A R 2017
WESTERN EUROPE
COUNTRY SECTOR ACTIVITY
Germany Automotive sector Heating systems for vehicles
Germany Agri-food Ice production and distribution
Germany Agri-food Jam production and distribution
Belgium Agri-food Ice production
France Chemicals Manufacturing and distribution of pharmaceutical products
France Chemicals Sale of air freshener
France Other Sale and rental of lifting machinery (service lifts, lifts...)
The Netherlands Agri-food Juice bottling and packaging
Italy Capital goods X-ray image diagnosis
Italy Chemicals Vegetable oils for the cosmetic sector
Italy Chemicals Vegetable oils for the cosmetic sector
Italy Agri-food Ice cream production
Italy Trade Sale of toys
Italy Energy Electricity cogeneration plant
Portugal Wood industry and wood by-products Wood board manufacturing
Portugal Iron and steel industry Acquisition of aggregate quarry and construction of lime plant
Portugal Chemicals Manufacturing and distribution of pharmaceutical products
Portugal Agri-food Winery and enotourism
Portugal Automotive sector Powder paint plant
United Kingdom Engineering Remote management of infrastructures
United Kingdom Agri-food Cockle fishing
United Kingdom Hotel and catering business Youth hostel management
United Kingdom Chemicals Manufacturing and sale of industrial adhesives
United Kingdom Other Assisted reproduction clinics
United Kingdom Chemicals Sale of dermatological products
United Kingdom Naval/Aeronautical/Rail Sector Train assembly and maintenance
United Kingdom Services Urgent patient transportation
Switzerland Other Foreign currency exchange service
39
Activity Report 17
WESTERN EUROPE
PROJECT COMPANY EQUITY INSTRUMENTS
OTHER INSTRUMENTS (subordinated loans, variable rate loans or ordinary loans)
Dreiha Gmbh y Grönland 20
Ice Age Ice
MÜHLHÄUSER
Cubers Europe
Arafarma France
Cristalines Centre Europe
Fraco France
AMC Vissingen
A.T.S. Applicazione Tecnologie Speciali
GP Textrón
GP Textrón
Ice Cream Factory Italy
IMC Toys Italy
Sampol Italy
Luso Finsa Indústria e Comércio de Madeiras
Microlime
Pharmasac Productos Farmacêuticos
Seis Quintas Martúe
Transformaçoes Superficiais Marsan
Capside UK
Cardium Shellfish. Cardium & Trevor Boats
Equity Point UK
Forest Chemical Group
IVI London Wimpole / Midland Fertility
Reig Jofré UK
Sociedades dependientes de CAF UK
UK Vehicle Support Limited y NewCo
Eurodivisas
40
A R 2017
INTERNATIONAL
COUNTRY SECTOR ACTIVITY
International Energy Promotion, production and management of renewable energies, water and infrastructures
International Financial sector Public private fund to invest in debt instruments
International Financial sector Debt fund for Spanish companies with an international component
International Financial sector Expansion capital fund for Spanish companies and their internationalisation
International Construction Manufacturing and sale of cement and concrete
International Services Digital consulting, outsourcing and IT management
International Agri-food Coca-Cola processing and bottling
International Other Assisted reproduction
International Other Production and sale of bedding products
International Naval/Aeronautical/Rail Sector Train manufacturing and maintenance
International Financial sector Fund to participate in companies which build renewable energy plants
International Transport infrastructures Licences and infrastructures
International Building materials Prefabricated prestressed reinforced concrete products
Internacional Energy Engineering aimed at electricity generation
Internacional Financial sector By-products for exchange rate hedging
Internacional Services Information and communication technology
Internacional Automotive sector Automotive components
Internacional Environment Hazardous waste management and recycling
Internacional Services Environmental and water services and multi-services
41
Activity Report 17
INTERNATIONAL
PROJECT COMPANY EQUITY INSTRUMENTS
OTHER INSTRUMENTS (subordinated loans, variable rate loans or ordinary loans)
Acciona
Alteralia
Alteralia II
Aurica III - Fondo de Capital Riesgo
Cemolins Internacional
Entelgy Consulting Internacional
Equatorial Cocacola Bottling Company
Equipo IVI
Grupo Pikolin
Inversiones en Concesiones Ferroviarias
Norax Green Capital
OHL Concesiones
Pacadar
Sampol Ingeniería y Obras
TCX
Tecnocom Telecomunicaciones y Energía
Teknia Manufacturing Group
Tradebe Environmental Services
Valoriza Gestión
42
08
43
Selection of Investment Projects
44
A R 2017
DELTACOM Mexico
Promoter: DeltacomGroup Ingeniería S.A.
SME: Yes
Project Company: DeltaComGroup Ingeniería México S.R.L. de C.V
Business activity: Telecommunication Repair Services
Sector: Services
Total investment: €582,100
Financing: €300,000
Product: Joint venture instrument
Resources: COFIDES/FONPYME
Number of employees directly associated with the project: 14
Number of employees in the head office in Spain: 61
COFIDES supported DeltacomGroup in its internationalisation process in Mexico. To this end COFIDES provided
€300,000 through FONPYME and COFIDES own resources to set up a commercial subsidiary in Mexico.
DeltaComGroup is in the telecommunication repair services industry for telecommunication operators,
hardware manufacturers and other companies which provide telecommunication infrastructure (electrical,
railway and gas operators, and government agencies). In addition, its business also extends to other hardware
sales services, asset management and integral management of replacements.
The group is made up of a series of subsidiaries; some are commercial and productive, such as Spain, Russia,
Mexico and soon Nigeria, and others are commercial subsidiaries such as Germany, the Netherlands and USA.
The company headquarters is located in San Sebastián de los Reyes (Madrid), and they have 61 employees in
Spain.
45
Activity Report 17
ALANTRA FUND
Promoter: Grupo Alantra
SME: No
Project Company: Alteralia II S.C.A.
Business activity: Investment in companies that do business abroad
Sector: Financial
Total investment: Up to €150m
Financing: Up to €30m
Product: Open capital
Resources: FIEX
Number of employees directly associated with the project: N.A.*
Number of employees in the head office in Spain: N.A.*
*This will apply to each of the investments
COFIDES acted as main investor of the second debt fund led by Alantra. The Fund, with an objective size of
€150m, will invest in Spanish companies with international ambitions.
This operation signals a diversification of FIEX investments, whose participation is expected to catalyse the
invested amount approximately fourfold for the internationalisation of Spanish companies.
COFIDES participated in Alteralia I through the FIEX, the first debt fund developed by Alantra (before N+1) with
a size of €140m. It is one of the first exclusively Spanish debt funds and has fulfilled the established goals
having carried out 11 investments in a period of two years.
Alantra is an independent Spanish finance group specialised in mid-market companies. It is the only financial
advising, and asset management and investment company that does not belong to a banking group, listed in
the Spanish market. It has a team of 396 professionals and offices in 21 countries, managing €3,700m.
46
A R 2017
GALLIZO Polonia
Promoter: José María Gallizo, S.L.
Pyme: Yes
Project company: Gallizo Polska S.P. ZOO
Business activity: Manufacturing counterweights for industrial sectors and construction materials
Sector: Capital goods
Total investment: €810,000
Financing: €600,000
Product: Joint venture instrument
Resources: FONPYME
Number of employees directly associated with the project: Forecast to create between 10 and 20 positions
Number of employees in the head office in Spain: 94
COFIDES accompanies the SME José María Gallizo, S.L. in international growth. With the support of the
FONPYME, the company has invested in machinery to establish a plant for manufacturing counterweights for
elevators and electrical household appliances in Poland.
Gallizo is characterised by developing a strategy based on the continuous investment in R&D, the close
collaboration with its multi-national customers and the diversification of products, customers, countries and
sectors.
It is an Aragonese SME founded in 1949 whose main activity is to design, manufacture and sell prefabricated
concrete and construction materials for the industrial and construction sectors. The company started in the
construction sector but in recent years has diversified towards other fields, manufacturing counterweights for
elevators, electrical household appliances and railways.
47
Activity Report 17
GLOBALVIA Chile
Promoter: Globalvia Inversiones S.A.U.
Pyme: No
Project company: Sociedad Concesionaria Autopista Costa Arauco S.A.
Business activity: Concession of Route 160
Sector: Transport infrastructure
Total investment: €185m
Financing: €30m
Product: Equity
Resources: FIEX and COFIDES
Number of employees directly associated with the project: 168
Number of employees in the head office in Spain: 82
Globalvia has acquired the licensing agreement of Route 160 in Chile from the company Acciona. COFIDES
collaborated in this operation and took 47.4% holding in Globalvia Chile SpA through its own resources and the FIEX
fund.
Route 160 is a motorway toll road in Concepción province (Bío-Bío region), between the towns of Coronel and Tres
Pinos. The infrastructure is an important route for transporting wood, one of the main economic activities in the area.
The motorway has been fully operational since March 2017, although the 280-metre Ramadillas bridge still needs
to be completed. Globalvia will make the most of this infrastructure, a brownfield concession for 40 years, for the
construction, maintenance and operation by means of charging a toll directly to the user.
Costa Arauco is controlled by the Globalvia Inversiones S.A.U. group, which is one of the global leaders in infrastructure
concessions management, and which manages 22 motorway and railway projects in Spain, Ireland, Portugal, Chile,
Andorra, Mexico, Costa Rica and the USA.
48
A R 2017
Grupo TRUCK & WHEEL USA
Promoter: Grupo Truck and Wheel
Pyme: No
Project company: Truck and Wheel USA Corporation
Business activity: Industrial manufacturing
Sector: Automotive
Total investment: €24m
Financing: €9m
Product: Equity
Resources: FIEX
Number of employees directly associated with the project: 75
Number of employees in the head office in Spain: 1,435
COFIDES will acquire a 40% capital share of the US subsidiary of the Navarran company Grupo Truck & Wheel
to set up a tyre assembly plant.
The company will rely on the participation of the FIEX fund in the project company’s capital, with the aim of
carrying out necessary investments to provide a service to the Mercedes-Benz plant in Vance (Alabama), for
which the company was the successful bidder. With this new plant, it will provide services to Mercedes-Benz,
enabling it to establish itself as a supplier in the USA.
The project concerns the acquisition of machinery and development of a 11,800 m2 tyre assembly plant, which
will have warehouses and automated tyre and wheel rim assembly lines.
Truck & Wheel is a Spanish business group specialized in logistics and wheel assembly for the automotive
sector. It started operations in 1998 in Lesaca, Navarra and currently has 1,435 employees across 24 offices.
The company’s operations are in the areas of transport, distribution, storage, wheel assembly and logistics
consultancy services. It is also present in Portugal, France, Mexico and USA.
49
Activity Report 17
IBARMIA China
Promoter: Ibarmia Innovatek, S.L.U.
Pyme: Yes
Project company: Shandong Ibarmia CNC Machine Manufacturing Co., Ltd.
Business activity: Manufacturing and selling mechanised centres
Sector: Plants and Factories Capital assets
Total investment: €4m
Financing: €2m
Product: Joint venture instrument
Resources: FONPYME
Number of employees directly associated with the project: 35
Number of employees in the head office in Spain: 115
COFIDES has supported the Ibarmia production plant implementation in China by way of a co-investment
finance instrument through FONPYME.
Ibarmia is based in the machine tools sector and has been present in China for more than ten years with
several clients. This experience and the fact that the Asian country is the premier consumer of machine tooling
worldwide and which has seen significant growth in the technical development within this industry, have led
Ibarmia to productively establish itself in China.
The project has been developed through a joint venture with a local partner for the manufacturing and
commercialisation of five axle-machining and multi-process centres. The Guipuzcoan company will provide the
know-how and the design licences for the manufacturing of the centres. Their local partner will bring together
their local knowledge of the Chinese market, their contact network as well as their industrial capacity.
Ibarmia is a family SME, established in Azkoitia (Guipúzcoa) in 1945. It has a presence in Europe, Asia and
America, and exports 90% of its production. As a result of the innovative endeavours and constant investment
in R + D + i, the company has recently launched new machinery in the industry 4.0.
50
A R 2017
MMM Mexico and Romania
Promoter: Manufactura Moderna de Metales, S.A.
Pyme: No
Project company: MMM Autoparts Américas S.A. de C.V. (MMM México)
Business activity: Transformation of tubing for the automotive sector
Sector: Automotive
Total investment: €2.6m
Financing: €1.8m
Product: Joint venture instrument
Resources: COFIDES - FIEX
Number of employees directly associated with the project: 27
Number of employees in the head office in Spain: 170
Project company: MMM AUTOPARTS, SRL (MMM Autoparts)
Total investment: €3.8m
Financing: €3m
Product: Ordinary loan
Resources: COFIDES
Number of employees directly associated with the project: 90
COFIDES accompanies Manufactura Moderna de Metales (MMM) in international growth. The company is
specialized in processing metal tubing for the automotive sector.
COFIDES and MMM have collaborated to facilitate the company’s expansion in Mexico and Romania. Therefore,
through their own resources they have supported the investment in machinery and extension of the production
capacity of the factory in Romania, MM Autoparts. This project has been supported by COFIDES since 2013.
This subsidiary has been present in Romania for eleven years, when the company established itself in the
country following one of its main clients. A large part of this plant’s production is exported to other European
countries, Turkey, Russia and the Asian market.
The support from COFIDES has also enabled the company to establish itself in Mexico and to set up a production
plant in Silao (Bajío). The funding contributed through the FIEX fund and COFIDES own resources has enabled
the company to acquire machinery to develop the project in a key destination within the automotive industry.
51
Activity Report 17
NETMIND USA
Promoter: Netmind, S.L.
Pyme: Yes
Project company: Netmind International LLC
Business activity: Services
Sector: Training services
Total investment: €200,000
Financing: €150,000
Product: Joint venture instrument
Resources: FONPYME
Number of employees directly associated with the project: 2
Number of employees in the head office in Spain: 35
Project company: B2T Training LLC
Total investment: €890,000
Financing: €320,000
Product: Joint venture instrument
Resources: FONPYME
Number of employees directly associated with the project: 6
Netmind, the technology company specialised in providing training and assistance services to IT professionals,
has strengthened its position in the USA through its collaboration with COFIDES.
COFIDES has, therefore, accompanied Netmind in two of its projects, the first aimed to open its US subsidiary
in Miami, Netmind International. Subsequently, Netmind acquired the US company B2T Training in Atlanta,
which was also supported by FONPYME, funding 36% of the total investment.
The company was founded in 2000 and is the leading training supplier in business analysis and assistance
services for agile transformation with its head office in Atlanta (Georgia). By purchasing B2T, Netmind
consolidated its presence in the US and will have international commercial partners providing courses and
certifications in countries such as South Africa, Australia and New Zealand.
The company will maintain both active projects simultaneously, each one being aimed at a different customer
profile. Netmind International develops the business of Spanish customers who operate in the USA and Latin
America and B2T Training will remain focused on the main US companies.
52
A R 2017
SUPRACAFÉ Colombia
Promoter: Supracafé, S.A.
Pyme: Yes
Project company: Supracafé Colombia, S.A.
Business activity: Coffee production
Sector: Agri-food
Total investment: €600,000
Financing: €300,000
Product: Joint venture instrument
Resources: COFIDES
Number of employees directly associated with the project: 25-250
Number of employees in the head office in Spain: 33
COFIDES has contributed to the expansion of a coffee processing plant at the Colombian subsidiary of
SUPRACAFÉ, a company focused on the production and distribution of gourmet coffee.
SUPRACAFÉ purchases green coffee mainly in Colombia and performs the roasting, packaging and distribution
processes on the premises of its property in Móstoles (Madrid). It commercialises the product with its own brand
in different varieties and formats and supplies its customers with supplementary products such as sugar, tea or
chocolate.
With this project, SUPRACAFÉ will empower hundreds of female farmers through purchasing premiums and
spreading agricultural practices. The company currently employs 25 permanent employees, but in times of sowing
and harvesting the number can rise to 200.
SUPRACAFÉ Colombia was founded in 2008 with the aim of integrating into the value chain to produce high
quality coffees and to apply R&D and innovation to its processes in the cultivation and processing of the different
coffee varieties.
In 2017, SUPRACAFÉ was recognised and associated with the Business Call to Action programme (BCtA), part
of the United Nations Development Programme (UNDP), as the first Spanish company to undertake inclusive
business practices.
53
Activity Report 17
TRADEBE Internacional
Promotor: Tradebe Environmental Services
Pyme: No
Sociedad de proyecto: N.A.
Business activity: Management and recycling of industrial waste
Sector: Environmental services
Total investment: Up to €265m
Financing: Up to €30m
Product: Joint venture instrument (participation in financing syndicate)
Resources: FIEX
Number of employees directly associated with the project: N.A.
Number of employees in the head office in Spain: 2,150
Through this operation, COFIDES forms part of the first global “green lending” financing syndicate, led by BBVA
as the agent bank. Green loans promote environmental sustainability and are an alternative source of funding.
Eleven national and international financing organisations take part in this operation, including COFIDES through
the FIEX fund.
This is the main corporate financing of Tradebe, which gives the company the chance to comfortably finance
their general corporate needs together with their future medium-term growth plan, combining organic growth
with selective acquisitions. With a team of more than 2,150 people, the company currently operates in Spain,
France, UK, USA and Oman, and manages more than 70 facilities around the world.
As the leader in management and recycling of industrial waste in Europe and the USA, Tradebe is a company
with one of the biggest international projections in the environmental industry.
This green financing is based on Tradebe’s policy of corporate social responsibility. One of its objectives is to
minimise the environmental impact, reduce energy consumption and promote the conservation of natural
resources by providing respectful, innovative and quality services for the environment.
09
Staff organization chart
56
A R 2017CEO Support Unit: EDFI Coordination, Institutional Relations & Studies Service
PRESIDENCYSalvador Marín
ChairmanPilar Cruz (I)
(Assistant)Cristina Sánchez (I)
(Assistant)Carlos Moreno Raúl Moreno Silvia Rodado
External Corporate Communication Unit
Laura Manzano Ángel González
SENIOR MANAGEMENT
Luis de FuentesGeneral Manager
Facilities Management
GENERAL SECRETARIAT
Ana Victoria Fernández
General Counsel
Eva Guerrero(Assistant)
Jesús Aranaz Teresa Tamés Luis Torres
CONTROL, INTERNAL AUDIT AND QUALITY
Mª Victoria de Luis Deputy Director
Ángeles Prieto Isabel Barril Nuria Blanco
MARKETING & BUSINESS DEVELOPMENT
Ana CebriánDeputy Director
Cristina Mena Teresa Madrigal Margarita López-Galiacho
Sergio Sánchez Silvia Ferreiro Eduardo Serrano
Financing for Development
FINANCING FOR DEVELOPMENT & EUROPEAN AFFAIRS
María Vidales Deputy Director
Mª Luz García (II) (Assistant)
José Carlos Villena María Martínez Lola Mercader Beatriz Morant Julia Rabadán
Development & European Affairs
Amalia García Cristina Rodríguez Carlos Martín Carlos Mosquera Nuria Rodríguez Cristina Bravo
(I) She also supports the General Management division(II) She also supports the Control, Internal Audit & Quality and Corporate & Sustainability divisions(III) She also supports the Marketing & Business Development division(IV) She also supports the Information Technologies division
57
Activity Report 17
INVESTMENT & PORTFOLIO MANAGEMENT
Miguel A. Ladero Deputy Director
Sol García (III)(Assistant)
Mar Ríos (III)(Assistant)
Álvaro Hernández José Luis Ocasar Yolanda Gómez de Segura
Ana Flor Álvaro Justo Manuel Fernández Gloria Santiago Umberto Ferrer Mª Ángeles Vara
Juridical
Marta Blond Eduardo Fernández Luis Naranjo Antonio Fernández Pilar Morencos Adriana Pita
RISK
Consuelo Díaz Deputy Director
Cristina Rodríguez(Assistant)
Carolina Fernández-Puebla
Sergio Mata
Accounting
ECONOMIC & FINANCE
Héctor Turiel Deputy Director
Belén de la Fuente (IV) (Assistant)
Laura Sanz Laura Sánchez Sergio Nieva Emma Méndez
Treasury Settlements
Consuelo Abad Ana Romero Sonia Gómez Laura Torres
Sustainability & CSR
CORPORATE & SUSTAINABILITY
Fernando Aceña Deputy Director
Regina Pálla Lola Vázquez Isabel Griñón Ignacio Coloma
HHRR Internal Communication
May Sánchez Álvaro Padial Silvia Rodado
INFORMATION TECHNOLOGIES
Alejando Colino Alfonso Sánchez Laura Valeriani José Luis Viana Daniel Martínez
INTERNS
María Cid María Fernández-Cavada
Irene Moreno Rocío Señán Ana Belén Heras
58
10
59
Management Report
60
A R 2017
1. ECONOMIC ENVIRONMENT
According to estimates by the International Monetary Fund, global economic activity
continued strengthening in 2017 with an estimated world GDP growth of 3.7%. This
growth recovery has been widespread and especially significant in Europe and Asia.
Emerging and developing countries continued contributing the most to global economic
growth, with an estimated rate of 4.7%, while advanced economies grew at a slower rate
(2.3%), albeit more than the rate in 2016 (1.7%).
Despite the context of international growth, the global flows of Foreign Direct
Investment (FDI) experienced a decrease of 16% compared to the previous year,
according to UNCTAD. The decrease of FDI flows to developed countries (-27%) was
the main factor in explaining the global fall that was registered.
Developed countries registered a fall of 30% in cross-border mergers and acquisitions,
compared to an increase of 44% in developing countries. North America (-33%) and
Europe (-26%) experienced significant falls in FDI flows received in 2017, mainly due
to the decrease in flows received by the United Kingdom (-90%) and USA, after the
maximums reached in 2016. Despite this, 19 of Europe’s 32 economies saw increases
in FDI flows received, such as Germany (+250%) and France (+77%).
With regards to the developing economies, the FDI flows increased 2% in 2017. The
region of Latin America and the Caribbean experienced an increase in FDI inflows
(+3%), which was the first increase in 5 years for the region. Brazil saw a 4% increase
in inflows, just like Costa Rica (+15%), while Chile (-44%), Colombia (-1%) and Peru
(-20%) suffered a decrease. UNCTAD estimates that the FDI inflows in Mexico stayed
at similar levels to those in 2016.
World GDP
growth
3,7%
Cross-border mergers and acquisitions
FDI flows
Developing economies
61
Activity Report 17
Moreover, FDI flows received by Asia rose 2%, reclaiming its position as the main
recipient of FDI in the world with 30%, followed by the European Union and
North America. The main receiving countries of the Asian region were China,
Hong Kong and Singapore. China continued to be the number one FDI-receiving
developing country in 2017, and second in the world, with only the USA higher. In
contrast, Africa registered a 1% fall with significant decreases in countries such as
Nigeria (-24%), Angola (-20%) and Egypt (-14%), while the Democratic Republic
of Congo (+29%), South Africa (+43%) and Ethiopia (+14%) experienced significant
increases.
In the Spanish economy, GDP increased by 3.1% in 2017 according to the National
Statistic Institute (INE), a similar rate as 2015 (3.2%), and the highest since 2007. In
2017, the contribution of foreign demand to GDP growth was positive.
The momentum of the foreign sector continues and, proof of this can be seen in the
positive evolution of the Spanish goods exports in 2017, which recorded the best
figures since their first publication in 1971 exceeding €277,000 million for the first
time, representing an increase of 8.9% on the previous year.
In 2017, the Spanish export progress was better than that of the eurozone as a whole
(which grew 7.2%) and of the EU (0.1%). Italy, exports (7.4%), Germany (6.3%), France
(4.5%), USA (6.6%) and China (6.7%) increased to a lesser extent than in Spain.
Moreover, in 2017 the number of Spanish exporters increased by 8.5% over 2016,
to 161,454. The number of regular exporters (which have been exporting for four
consecutive years) increased by 1.5% to 50,562.
Meanwhile, in 2017, net Spanish investment flows overseas recorded positive values
of €30,736 million, 42% lower than those reported in the previous year. During 2017,
the United States, France, Mexico, Canada, The Netherlands, Colombia and Brazil
were found in this order among the main countries receiving Spanish net FDI. Among
them, France and Canada experienced the highest growth rates in percentage terms
as target countries. The main sector receiving Spanish net FDI abroad during 2017
was transport and storage, followed by extractive industries.
UNCTAD estimates suggest that in 2018, FDI flows will increase again, as a result
of accelerating forecasts for next year's global economic growth, which is expected
to reach 3.9%, according to the International Monetary Fund. Likewise, greater
economic activity is expected to contribute to increasing international trade volume,
which is expected to increase by more than 3%.
Evolution of the Spanish goods
exports
Regular
exporters
Gross investment
flows
Internacional
trade
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2. PROJECT FINANCING
During 2017 COFIDES activity, both as a single entity and as manager of the FIEX and FONPYME funds, has
continued its growth of previous years in many of its indicators. The investment portfolio has reached its highest
historical level with a figure of €937.99m, 5% higher than the volume approved in 2016. The formalisations
touched a very high level, reaching €203.30m.
If we compare the quadrennial period of 2013-17 to 2008-12, a significant increase in the number of formalised
projects is noticed (68%), as well as in amounts disbursed (30%). This data shows, in the case of SMEs, an
increase of around 150% and 37% respectively.
The outlays, approved and formalised operations, total portfolio and committed portfolio in 2017 compared to
the figures for the five preceding years are in the table below:
2011 2012 2013 2014 2015 2016 2017
Outlays 134.69 220.72 209.69 197.29 155.08 97.75 197.50
Formalisations 170.92 227.41 221.59 244.89 157.11 203.60 203.30
Approvals 193.28 197.72 243.31 258.20 334.43 141.32 216.84
Total Portfolio 555.26 737.20 872.53 911.79 926.96 893.18 937.99
Committed Portfolio 625.38 809.02 935.48 1,018.26 1,017.91 1,064.41 1,051.77
(In € million)
2.1. Outlays
The total outlay volume for operations managed by COFIDES in 2017 was at one of its highest levels, reaching
€197.50m. Of those, €161.83m was disbursed under FIEX, €14.02m came from FONPYME and €21.64m were
drawn from COFIDES own resources.
2008-2012 2013-2017
689.32
857.30
Evolución del volumen de desembolso 2008-2017
(en millones de euros)
Outlay volume 2008-2017(€ million)
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Activity Report 17
2.2. Approvals
In 2017, 65 projects were approved for a committed value of €216.84m compared to 55 approved projects in
the previous year, amounting to €141.32m. The average price per approved project in 2017 was €3.34m, much
lower than previous years (€5.66 in 2015), managing a greater number of companies and projects with a lower
resource commitment.
Drawn from COFIDES own resources were a total of 39 approved projects in 19 countries, with an overall
commitment of €27.82m.
Out of these 39 projects, 7 were co-financed by the Fund for Foreign Investment (FIEX), for an additional amount
of €32.88m in five countries. The Fund for Small and Medium-sized Enterprise Foreign Investment Operations
(FONPYME), co-financed together with COFIDES a total of 18 projects in eleven countries, increasing the total
by a further €6.21m
Drawn from FONPYME resources without co-financing, 17 projects were approved in 9 countries for a total of
€12.51m. This attains a total annual commitment, drawn from FONPYME resources, of €18.72m.
The FIEX Executive Committee approved 9 projects in 6 countries without COFIDES co-financing for a total
amount of €137.42m. A total commitment volume of €170.30m from FIEX resources in 2017 was reached.
Additionally, in 2017 the FIEX Executive Committee approved 17 project profiles valued at €170.12m.
In the framework of European Financing Partners (EFP) one operation was approved amounting to €0.66m,
from COFIDES own resources (50%) and FIEX (50%). Moreover, through the new investment facility Interact
Climate Change Facility (ICCF), three projects of €1.17m were approved using COFIDES own resources (50%)
and FIEX (50%).
35%
21%
15%
5%2%
1%
21%
Distribución por área geográfica del volumen de recursos aprobados en 2017
Latin America 35%
Western Europe 21%
Asia, Oceania and Middle East 15%
North America 5%
Central and Eastern Europe 2%
Africa 1%
International 21%
Approved resources in 2017 – by area
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As for the destination areas, Latin America remained the largest recipient region of approved investments,
equating to 35% of total resources committed. Behind Latin America were Western Europe (21%), Asia and the
Middle East (15%), North America (considered as USA and Canada) (5%), Central and Eastern Europe (2%) and
Africa (1%). The remaining 21% has been classified according to the "International" category that includes (i)
commitments related to loans from the Spanish head office for overseas projects identified in several countries
(ii) commitments in a newly created fund to facilitate funding through senior, second lien and subordinated
debt to Spanish companies with a high international component.
By commitment volume, Chile (22%), United Kingdom (16%), Indonesia (12%), Mexico (7%), USA (5%), Italy
(3%) and Germany (3%) were the main destinations for approvals, whereas the number of approved projects
was: 8 in Mexico, 7 in USA, 5 in China, and 4 in Colombia, Chile and Peru.
The sectorial distribution of investment is very diverse. Chemical and Pharmaceutical sectors are the main
sectors with 10 approved projects each. The automotive sector is next with 9 projects, agrifood with 8, and
energy with 7. Finally, in 2017 some projects were also approved in the field of engineering, trade, capital goods,
construction materials, environment, transport infrastructure, water infrastructure, financial, metal-mechanic,
naval/aeronautic/railway, transport and others.
The main recipient sectors by investment volume were: chemical and pharmaceutical (14%), naval/aeronautic/
railway (14%), financial (14%), transport infrastructure (14%), automotive (13%), agrifood (11%), environmental
(5%), business services (5%).
Finally, these projects have had an exponential effect on host country economies. The 2017 approvals represent a
total investment worth more than €1,100m (of which around two thirds relate to five major infrastructure projects)
which generated approximately 4,300 direct jobs, with the beneficial knock-on effects in these developing
Approved Resources in 2017 – by sector
Distribución por sector del volumen de recursos aprobado en 2017
Ind. química y farmacéutica 14%
Naval/aeronáutico/ferroviario 14%
Financiero 14%
Infraestructuras del transporte 14%
Automoción 13%
Agroalimentario 11%
Medioambiente 5%
Servicios a empresas 5%
Materiales de construcción 2%
Otros 8%
14 %
14 %
14 %
14 %
13 %
11 %
5 %
5 %
8 %2%
Distribución por sector del volumen de recursos aprobado en 2017
Chemical and Pharmaceutical 14%
Naval/Aeronautic/Railway 14%
Financial 14%
Transport infrastructure 14%
Automotive 13%
Agrifood 11%
Environment 5%
Business services 5%
Construction materials 2%
Others 8%
14 %
14 %
14 %
14 %
13 %
11 %
5 %
5 %
8 %2%
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Activity Report 17
countries, including strengthening local economies and stimulating knowledge transfer. Similarly, and from
the perspective of the home economy, COFIDES made significant contributions to the internationalisation
of the national business fabric, enabling Spanish companies to deal with the downturn in domestic demand,
maintaining their business activity and to continue generating employment in Spain.
2.3. Formalisations
A total of 53 projects were formalised in 2017, for a volume of €203.30m, compared to 57 projects formalised
in 2016 with a commitment of €203.60m maintaining one of the highest formalisation levels in the company’s
history.
Drawn from COFIDES’ own resources, 32 projects were formalised in 15 countries, with an overall commitment
of €24.95m.
FIEX co-financed 4 of these projects contributing an additional €32.38m, while FONPYME co-financed 18
projects amounting to a further €6.96m.
Using FONPYME exclusive resources, 13 projects have been formalised for €9.13m and with FIEX exclusive
resources, 8 projects have been formalised worth €129.99m.
The total annual volume of formalisation under FONPYME amounted to €16.09m and under FIEX resources
amounted to €162.26m.
Within the ICCF scheme, one ICCF operation for a total amount of €0.84m was formalised in 2017 with
resources structured through FIEX (50%) and COFIDES (50%).
As for the target areas of the formalised projects in 2017, Latin America, with 35% of the total committed
resources was the main recipient of the financed investments. Followed by Western Europe (20%), Asia,
Oceania and Middle East (16%), North America (considered as USA and Canada) (6%), Central and Eastern
Europe (2%) and Africa (0.1%). The remaining 21% has been classified according to the "International" category
that includes (i) commitments related to loans from the Spanish head office for overseas projects identified in
several countries (ii) commitments in a newly created fund to facilitate funding through senior, second lien and
subordinated debt to Spanish companies with a high international component.
By sector, the main destinations of resources originated in 2017 were chemical and pharmaceutical (15%),
transport infrastructure (15%), naval/aeronautic/railway (15%), financial (15%), automotive (14%), agrifood (11%),
environment (5%), construction materials (2%), transport (2%), energy (2%), business services (2%), trade (1%),
capital goods (1%), engineering (1%), others (0.5%), water infrastructure (0.3%) and metal-mechanic (0.2%).
34% of the resources invested in the overall formalised operations in 2017 were in the form of capital and
hence confirmed the trend of COFIDES to provide additional funding through the financial products market.
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34%
66%
Capital 34%
Loans 66%
2.4. Portfolio
The investment portfolio contains all the financial commitments formalised by COFIDES, FIEX and FONPYME,
including the committed values (but not distributed), net of repayments. Further to these criteria, on 31st
December 2017 the investments committed by the company were worth €1,051.77m, related to 295 projects
in 61 countries.
Meanwhile, the total portfolio on 31st December 2017 reflected for the formalised operations, the balances
between the amounts actually disbursed and repaid, which amounted to €937.99m. This figure represents the
highest committed portfolio level ever recorded and represents an increase of 5% on the previous year.
0
100
200
300
400
500
600
700
800
900
1000
2012 2013 2014 2015 2016 2017
Outlays Committed Portfolio
Approved Resources in 2017 – by financial product
Outlays and total Committed Portfolio 2012-2017(€ million)
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Activity Report 17
3. COFIDES OPERATING AND MANAGEMENT CAPACITY
At the end of 2017 COFIDES reach an overall operating capacity of over €2,500m, through the financial
mechanisms and instruments which it manages or takes part in.
3.1. FIEX and FONPYME
The net assets of the FONPYME and FIEX funds rose to €990.84m as at 31st December 2017. Of this, €914.50m
corresponded to FIEX and the remaining €76.34m to FONPYME.
The FIEX fund continues to be a highly valued vehicle by those Spanish companies that are internationalised,
and in 2017 it maintained a high level of commitments. The resources volume approved by FIEX during 2017 has
amounted to €170.30m and 12 projects have been formalised for a volume of €162.26m, involving resources
in countries such as Chile, United Kingdom, Indonesia, USA, Mexico, Italy and Pakistan. At the end of 2017 and
with a revolving character, a total of 242 projects had been allocated to this Fund for a volume of €1,947.78m,
with 133 projects for €882.34m of its committed investments portfolio.
With regard to the FONPYME fund, the volume of resources committed during 2017 amounted to €18.72m.
Also, during this period, 31 projects with a volume of €16.09m were formalised under this fund. At the end of
2017, a total of 179 projects totalling €128.08m were charged to the Fund, leaving a committed investment
portfolio of 107 projects worth €67.16m.
3.2. Development Promotion Fund (FONPRODE)
FONPRODE is one of the main financial instruments
of the Spanish Cooperation, whose main objective is to
contribute to the eradication of poverty. FONPRODE
is managed by the Spanish Agency for International
Cooperation for Development (AECID) and is one of the
main channels of Official Development Aid. FONPRODE
came into force in 2011 and can finance non-reimbursable
and reimbursable operations (debt or capital).
COFIDES began supporting AECID in the management
of FONPRODE in October 2015. This support is limited
to reimbursable cooperation operations whose goal is the
social and economic development of partner countries,
through investment or economic resource transfers of a
reimbursable nature.
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0
200
400
600
800
1000
2012 2013 2014 2015 2016 2017
Evolución de desembolsos y cartera total 2012-2017En millones de euros
Desembolsos
Cartera de inversiones total
COFIDES takes part in the conference called: "Towards a
more effective development cooperation. The necessary
alliance of all actors"
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COFIDES functions in support of its management include: supporting the planning of FONPRODE
reimbursable activities, identifying operations that can be financed independently, providing support to
the AECID, carrying out analysis of due diligence in financial, legal, environmental, social and development
matters, support in operation formalisation, annual economic financial monitoring of the portfolio and the
biannual performance reporting on the reimbursable operations charged to FONPRODE.
During 2017, COFIDES supported the preparation of seven profiles of financial terms, three operations'
proposals and the formalisation of two operations. FONPRODE reimbursable portfolio (74 operations) was
monitored and 11 missions were identified, analysed and monitored..
3.3. ICO Lines
During 2016, there was no adhesion or no formalisation of new financing lines with the ICO, although in the
COFIDES portfolio there are two formalised operations under contract from the previous year for multi-
currency Financing.
3.4. Multilateral and bilateral resources
3.4.1. European Development Finance Institutions (EDFI)
In order to finance private sector projects in ACP countries, the financing scheme European Financing Partners
(EFP) has so far had six rounds of funding, the last signed in 2017, amounting to an additional €201m. In the sixth
round of funding, EFP extends its geographical scope of activity to finance projects in countries included in the
Official Development Assistance (ODA) recipients list of the OECD. So far, EFP had exclusively funded projects in
ACP countries (Africa, Caribbean, Pacific). COFIDES has contributed with a total of €45m structured through its
own resources and FIEX.
This financing scheme promoted jointly by the European Investment Bank (EIB) and the European Development
Finance Institution, both COFIDES counterparts, had committed, as at 31st December 2017, a total of €476.86m
in 36 projects located in 14 different countries. The combined FIEX/COFIDES resources invested in these projects
by the end of 2017, resulted in a commitment volume of €16.88m, in 27 projects in 12 different countries, 10 of
them belonging to Sub-Saharan Africa.
On the other hand, the investment facility Interact Climate Change Facility (ICCF) was created by the French
Development Agency (AFD), the European Investment Bank (EIB) and the Association of European Development
Finance Institutions (EDFI) in order to finance private and viable investment projects that contribute to the
mitigation of climate change and the promotion of energy efficiency in countries receiving ODA. ICCF had
committed, as of 31st December 2017, a total of €348.87m in 22 projects located in 12 different countries. In
late 2017, COFIDES had committed a total of €11.23m in 22 ICCF projects in 11 different countries, all countries
receiving Official Development Assistance.
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Activity Report 17
3.4.2. Blending instruments
Throughout the year 2017, COFIDES consolidated its
role as accredited entity for the indirect management
of the union budget with respect to the EU by means of
blending instruments, after officially submitting its first
operation within the scope of the financing initiative
AgriFI. Furthermore, it has continued working on deal
sourcing, having regular communication with the European
Commission to match its interest in preliminary phases of
potential projects and requesting the inclusion of two of
them in the pipeline. At the same time, COFIDES is also
actively working with the Secretariat of State for Trade
in order to identify and analyse operations which can be
financed with funds taken from the Credit Line "FIEM-EU
Facilities".
3.4.3. CAF (Development Bank of Latin America)
In 2016, CAF (Development Bank of Latin America) and COFIDES have jointly designed and implemented the
non-reimbursable Technical Cooperation Facility for Cuba with the goal of supporting the training of Cuban-
domiciled workers of Spanish or Cuban companies with Spanish business shareholding. The facility is endowed
with $500,000, provided by CAF to finance technical assistance activities and training.
Throughout 2017 COFIDES has expanded its operations both between companies that have expressed interest
in receiving financial support from COFIDES for developing its projects in Cuba, and companies with potential
investment interest in the country.
At the end of 2017, one operation was added to the Line for an amount of $24,580 (for trade, technical and
industrial training for Cuban staff). In addition, three approved and formalised operations by COFIDES are in
the preparation phase of the Technical Assistance Report.
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0
200
400
600
800
1000
2012 2013 2014 2015 2016 2017
Evolución de desembolsos y cartera total 2012-2017En millones de euros
Desembolsos
Cartera de inversiones total
Visit from the Chairman of CAF (Development Bank of
Latin America), Luis Carranza, to COFIDES
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4. INSTITUTIONAL ACTION
4.1. Activities with the EDFI framework and other Financial Institutions
In 2017 COFIDES was incorporated as a member to the EDFI Board of Directors, which is strategically relevant
for the company as it positions them as a leading figure in taking decisions which guide the strategy of the
Association of bilateral European Development Finance Institutions.
In the EDFI framework, COFIDES has participated throughout 2016 in the following working groups in order
to standardise the practices of member institutions and to facilitate the joint funding of operations: Corporate
Governance, Interact Lawyer Meeting, Development Effectiveness, Environmental and Social, Communication
Strategy, EFC and ICCF working groups.
COFIDES has also attended workshops and courses organised by EDFI and other European bilateral financial
institutions such as the EDFI seminar about mobilising institutional investments, the training schedules for new
EDFI employees, the FDI workshop on Gender Equality and WEE, "E&S Workshop for Microfinance", as well
as the SME Finance Forum. COFIDES also attended the event celebrating the 25th Anniversary of EDFI in the
framework of annual meetings of the World Bank and International Monetary Fund in Washington.
Also regarding the World Bank Group, COFIDES participated as a sponsor and host of the 1st Global Conference
for Financing Mobilisation, “Global Debt Mobilisation Conference” which the International Financing Corporation
(IFC) held in Madrid on 20th and 21st September. This Conference is a global event which aims to bring together
IFC partners from around the world to work together and move towards innovative financial solutions that
expand opportunities in the markets of developing and emerging countries in a viable and cost-effective
manner for investors.
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Intervenciones del presidente de COFIDES, Salvador Marín, y el vicepresidente de IFC, Jingdong Hu, en la bienvenida a los participantes de la I Conferencia Global de Deuda de IFC
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Bienvenida a los participantes de la I Conferencia Global de Deuda celebrada por IFC en Madrid
Statements by the Chairman of COFIDES, Salvador Marín, and the Vice Chairman of IFC, Jingdong Hua, at the welcoming ceremony
at the 1st IFC Global Debt Mobilisation Conference
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Activity Report 17
4.2. Other activities with Financial Institutions
In September 2017, the European Union approved the European External Investment Plan, which aims to
increase investments (especially those coming from the private sector) in African member countries and
the neighbouring regions through the creation of a European Sustainable Development Fund. This fund will
use, among other instruments, the opportunity to issue guarantees amounting to up to €1,500 million. The
objective of the Plan is to encourage inclusive growth and create employment, contributing to dealing with
the profound causes of irregular immigration. Five investment opportunities have currently been identified
(sustainable energy and connectivity; financing micro, small and medium-sized businesses (MiSME);
digitalisation for development; sustainable cities; agriculture and agro-industry) within which the accredited
entities can introduce investment programmes. In this regard, COFIDES forms part of a work group led by the
Secretary of State for Trade and which includes all the figures of the Spanish government that have interest
in the Plan, among those that stand out are AECID, Treasury Main Office, ICO, CESCE and ICEX. During 2017,
COFIDES actively worked on the proposal for the renewable energy opportunity and collaborated with AECID
on the proposal for the MiSME financing opportunity.
Likewise, in 2017 the accreditation process facing the Green Climate Fund (GCF) progressed. The GCF is an
organisation of the United Nations Framework Convention on Climate Change (UNFCCC) which finances
projects on mitigating and adapting to climate change. In 2017 COFIDES completed the first phase of the
accreditation process and the external auditors of the GCF analysed COFIDES in order to finish its report and
accelerate the completion of the second phase of the accreditation process. During 2018 it is expected that
COFIDES’ candidacy will be put forward for consideration before the Board of Directors of the GCF.
4.3. Signing of cooperation agreements
In 2017, COFIDES reinforced its approach strategy to financial institutions in third countries with the objective of
making the financial and non-financial support that these entities can offer in cooperation with COFIDES available
to Spanish companies. In this regard, cooperation agreements with Banco Provincia de Buenos Aires (Argentina),
Bancomext (Mexico) and NAFINSA (Mexico) were signed.
Signing collaboration agreements with NAFINSA (left) and Bancomext (right)
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A R 2017
Signing collaboration agreements with BID (left) and FEIQUE (right)
In domestic terms, COFIDES reached similar agreements with the Spanish Business Federation of the Chemical
Industry (FEIQUE) and with the Andalusian promotional body, EXTENDA.
Finally, the International Financial Institutions (IFI) have also developed their institutional cooperation, aimed
fundamentally at obtaining non-refundable financial resources. A collaboration and co-financing agreement
with BID INVEST (BID Group) was signed in October 2017 under this premise.
It is important to highlight that, in line with the strategy indicated in 2016, once COFIDES completes the
accreditation process for managing the EU budget, all of these agreements and partnerships include a clause
referring specifically to the opportunity of collaborating in the EU Blending field.
5. COMMERCIAL ACTIVITY
COFIDES Business Action Plan for 2017 followed the guidelines of the 2016-2019 COFIDES Strategic Plan, as well
as the 2016-2019 Optimal Portfolio Proposal.
The development and promotion of labour and commercial activity conducted directly with companies open
to receiving financial support from COFIDES had two fundamental pillars by which the developed commercial
activity has been supported.
In relation to the first, COFIDES has maintained an outstanding institutional presence in conferences and seminars
on financing and internationalisation where it has extensively spread its financial offer and support for the
internationalisation of Spanish companies, as well as for the development of the countries receiving investment.
Among the activities conducted within the framework of the agreements signed with Promotion Agencies for
Autonomous Communities, multiple conferences and seminars have been organised for companies to which
COFIDES has exhibited its financial offerings (AREX, ADE, INFO, IDEPA, IPEX, INFO, EXTENDA). Besides these,
COFIDES has worked closely with other representative institutions such as Banco Sabadell through their participation
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Activity Report 17
in various events organised throughout the year, the
programme Exportar para Crecer (Export to Grow)-, Banco
Santander -within the Exporta Plan; CAJAMAR, within
the CAJAMAR International Platform; Exporters Club;
Chamber of Commerce of Spain; CEOE and CEPYME (in
different business meetings, reverse missions and other
types of conferences), as well as business associations
(AMRE and TECNIBERIA, among others).
Internationally, it has been able to highlight the
development of the relationships with several
multilateral and bilateral development entities and
institutions such as IFC, BID, CAF, EDFI, TCX and
business promotion institutions like Procolombia, IFE
(Angola) and Baiterek (Kazakhstan).
In 2017, COFIDES proceeded to set up a series of
agreements with a number of commercial collaborators
in several regions of Spain with the aim of increasing
the commercial activity throughout Spain, thereby
contributing to spreading the financial offer of COFIDES.
The commercial activity developed in 2017 continues
to be characterised by its intensity. It has maintained
a high number of contacts with potential clients with
internationalisation projects, 749 contacts, a similar
figure to 2016 when the highest number of contacts
in COFIDES’ history was reached. It also managed to
highlight the drive to proactively identify target countries
(63% of the contacts maintained in 2017 were proactive,
compared to 56% in 2016). By type of company, 56%
of the contacts maintained were SMEs. Similarly,
highlighting that within the Annual Visiting Schedule, it
has maintained meetings with potential clients, both in
its offices and in COFIDES offices, with 343 companies
(which is an increase of 27% from 2016).
Regarding the creation of new products, in 2017 COFIDES designed, launched and implemented a product jointly
with NAFINSA which will increase the development of investment projects in Mexico, promoted by both SMEs
and large Spanish companies. Moreover, in 2017 the design of a product for encouraging the growth of companies
through internationalisation has been completed, which will be launched and commercialised in 2018.
Conference Exportar para Crecer (Export for Growth):
“Destination India. A country of opportunities”
COFIDES was part of the international panel at the 2017
INVESTructuras Congress
74
A R 2017
COFIDES continues its longstanding
collaboration with ICEX Spain Trade and
Investment under the sponsorship of COFIDES
in the Forums and Business Meetings organised
by ICEX Export Trade and Investments. In 2017,
in addition to this sponsorship, COFIDES actively
took part in the Forums and Business Meetings
held in China, Brazil and USA.
Statement from the COFIDES Chairman at the Spain-Brazil
Business Meeting
Presentation of the study ‘Foreign direct investment of Spanish
companies. Effects on the destination and the origin: five case studies in
developing countries and economies’
All this promotional activity and business
development focus have contributed to
the fact that in the course of 2017, 64 new
customers passed straight into the Area of
Operations for analysis and for volumes
exceeding €229 million.
6. PROJECT MONITORING
With regard to monitoring activities, the rating of the total risk managed, of the portfolio level aggregate
between FIEX, FONPYME and COFIDES has been revised and updated to 96% in 2017. This figure will rise to
100% in the first quarter of 2018.
In 2017, a more intensive monitoring mechanism was undertaken for those operations requiring special
monitoring, applying new risk levels according to the financial conditions of those viable operations, in order to
protect the interests of COFIDES, FIEX and FONPYME. In line with the above, last year resulted in a signifcant
recovery of several dubious operations.
Finally, in 2017 there was divestment of 4 capital transactions, recovering the total amount invested and its
interest.
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Activity Report 17
7. COFIDES FINANCIAL POSITION ON 31st DECEMBER 2017
For the fifth year in a row, the company has comfortably exceeded a €20 million turnover, reaching €24.83
million in 2017, which is a solid growth in turnover of 14.2% compared to the previous year. This led to an
operating profit of around €13.27 million, that is 15.4% higher than in 2016.
Regarding operational expenses as exterior services, they were not only significantly lower than the budgeted
amount (approximately €676,000), but they were even slightly lower than the previous year.
As a result of the above, in 2017 the turnover before tax increased to €12.39 million, an increase of 7.3%
compared to the previous year, improving the financial stability and solvency of the company and its position
as a benchmark in the field of financing the internationalisation of the Spanish economy.
Presentation of the association of former grant holders ICEX Alumni, which collaborates with COFIDES
76
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77
Financial Statements
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COMPAÑÍA ESPAÑOLA DE FINANCIACIÓN DEL DESARROLLO, COFIDES S.A., S.M.E.
Financial Statements
at 31st December 2017
Report from the Auditors
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COMPAÑÍA ESPAÑOLA DE FINANCIACIÓN DEL DESARROLLO, COFIDES, S.A., S.M.E.
Balance sheet on 31st December 2017(Figures in thousands of €)
ASSETS Notes 2017 2016
NON-CURRENT ASSETS 70,116 69,078
Intangible assets 5 58 77
Software 28 62
Advances on software 30 15
Tangible assets 6 935 1,023
Other facilities 624 702
Furnishing 200 224
Hardware 110 95
Transport 1 2
Long-term financial investments 69,123 67,978
Equity instruments 10 1,399 295
Loans to companies 11 58,009 59,616
Other financial assets 11 115 117
Accounts receivable, Funds 11 9,600 7,950
CURRENT ASSETS 58,444 50,916
Non-current assets held for sale 7 725 725
Trade debtors and other receivables 11 12,017 7,694
Accounts receivable 2,907 1,555
Accounts receivable, Funds 9,110 6,139
Short-term financial investments 11 15,321 13,867
Loans to companies 14,969 13,426
Interest outstanding on loans to companies 352 441
Short-term accrual accounts 19 24
Cash and other equivalent liquid assets 12 30,363 28,606
Treasury 19,863 28,606
Other Cash Equivalents 10,500 -
TOTAL ASSETS 128,561 119,994
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Activity Report 17COMPAÑÍA ESPAÑOLA DE FINANCIACIÓN DEL DESARROLLO, COFIDES, S.A., S.M.E.
Balance sheet on 31st December 2017(Figures in thousands of €)
EQUITY AND LIABILITIES Notes 2017 2016
NET EQUITY 124,959 117,464
Issued capital 13 39,396 39,396
Reserves 76,757 69,563
Legal and statutory reserves 7,879 7,879
Other Reserves 68,878 61,684
Yearly earnings 3 8,806 8,505
NON-CURRENT LIABILITIES - 215
Long-term debt 15 - 215
Debts with financial institutions - - 215
CURRENT LIABILITIES 3,602 2,315
Liabilities associated with non-current assets held for sale
7 40 40
Short-term debt 15 216 430
Debts with financial institutions 216 430
Trade creditors and other payables 1,415 1,298
Sundry creditors 15 350 506
Staff (remuneration outstanding) 15 266 265
Current tax liabilities 17 478 220
Other payables to Public Authorities 17 321 307
Short-term accrual accounts 16 1,931 547
TOTAL EQUITY AND LIABILITIES 128,561 119,994
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COMPAÑÍA ESPAÑOLA DE FINANCIACIÓN DEL DESARROLLO, COFIDES, S.A., S.M.E.
Profit and Loss Statement on 31st December 2017(Figures in thousands of €)
ON-GOING OPERATIONS Notes 2017 2016
Net turnover 19.1 24.837 21.742
Employee costs 19.2 (5.667) (5.306)
Wages and salaries (4.329) (4.097)
Employee welfare (1.338) (1.209)
Other operating costs (5.840) (4.903)
Consulting 19.3 (3.101) (3.133)
Taxes 19.3 (112) (104)
Loss and write-downs in provisions for trade operations
11.1 & 11.2 (2.627) (1.666)
Depreciation of non-current assets 5, 6 (188) (184)
Impairment losses and gains on disposals of assets (73) -
Impairment losses of assets 10 (73) -
Impairment losses and gains on disposals of non-current assets
5, 6 & 7 (1) (1)
Gains on disposals and others (1) (1)
Other Results 168 122
OPERATING INCOME 13,237 11,470
Revenues 19.4 3 6
Marketable securities and other financial instruments
Third-party 3 6
Financial expenses (93) (98)
Payable to financial institutions (9) (15)
Other third-party payables (84) (83)
Exchange rate differences (758) 165
FINANCIAL INCOME (848) 73
INCOME BEFORE TAX 12,389 11,543
Income Tax 17 (3,583) (3,038)
PROFIT FOR THE YEAR 3 8,806 8,505
89
Activity Report 17 COMPAÑÍA ESPAÑOLA DE FINANCIACIÓN DEL DESARROLLO, COFIDES, S.A., S.M.E.
Statement of Changes in Shareholder Equity on 31st December 2017(Figures in thousands of €)
A) Statement of Income and Expenditure for the year ending 31st December 2017
Notes 2017 2016
Balance of the profit and loss account 3 8,806 8,505
TOTAL INCOME AND EXPENDITURE 8,806 8,505
B) Statement of Total Changes in Shareholder Equity for year ending 31st December 2017
Share Capital(Note 13.1)
Legal Reserve(Note 13.2)
Voluntary Reserve
(Note 13.3)
Profit for the year
(Note 3)
Dividends(Note 3.1) Total
BALANCE ON 31st DECEMBER 2015 39,396 7,879 51,232 12,321 - 110,828
Total income and expenditure in 2016 - - - 8,505 - 8,505
Distribution of 2015 profit:
Reserves - - 10,452 (10,452) (1,869) (1,869)
Dividends - - - (1,869) 1,869 -
BALANCE ON 31st DECEMBER 2016 39,396 7,879 61,684 8,505 - 117,464
Total income and expenditure in 2017 - - - 8,806 - 8,806
Distribution of 2016 profit:
Reserves - - 7,194 (7,194) (1,311) (1,311)
Dividends - - - (1,311) 1,311 -
BALANCE ON 31st DECEMBER 2017 39,396 7,879 68,878 8,806 - 124,959
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COMPAÑÍA ESPAÑOLA DE FINANCIACIÓN DEL DESARROLLO, COFIDES, S.A., S.M.E.
Statement of Cash Flow on 31st December 2017(Figures in thousands of €)
Notes 2017 2016
OPERATING CASH FLOW
Earnings before tax 12,389 11,543
Adjustments 2,832 1,857
Depreciation of non-current assets (+) 5, 6 188 184
Impairment losses adjustments (+/-) 10 (73) -
Variation in provisions (+/-) 11.1 & 11.2 2,627 1,666
Results for retirements and disposals of non-current assets (+/-) - (85)
Financial revenues (-) (3) (6)
Financial expenses (+) 93 98
Change in working capital (8,986) 93
(Increase)/Decrease in Debtors and other receivables (4,323) (599)
(Increase)/Decrease in other current liabilities (1,655) 1,813
Increase/(Decrease) in Creditors and other payables (141) 132
Increase/(Decrease) in other current liabilities 1,384 (769)
Other non-current assets (+/-) (4,251) (484)
Other cash flows from operating activities (3,415) (3,680)
Interest paid (-) (93) (98)
Interest received (+) 3 6
Receipts from (payment of) corporation tax (+/-) (3,325) (3,588)
Operating cash flow 2,820 9,813
CASH FLOWS FOR INVESTMENT ACTIVITIES
Payments on investments (-) (82) (51)
Intangible assets 5 (15) (1)
Tangible assets 6 (67) (50)
Revenues for divestments (+) - 632
Other financial assets - 632
Cash flows for investment activities (82) 581
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Notes 2017 2016
CASH FLOWS FOR FINANCING ACTIVITIES
Receivables and payments for equity instruments - -
Receivables and payments for liability instruments (429) (304)
Issues - -
Return and repayment of (429) (304)
Bank loans (-) (429) (304)
Payments on dividends and earnings on other equity instruments
3.1 (1,311) (1,869)
Dividends (1,311) (1,869)
Financial cash flow from financing activities (1,740) (2,173)
EFFECT OF EXCHANGE RATE VARIATIONS 758 (165)
NET INCREASE/(DECLINE) IN CASH OR CASH EQUIVALENTS 1,756 8,056
Cash and cash equivalents at beginning of year 12 28,607 20,551
Cash and cash equivalents at year end 12 30,363 28,607
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COMPAÑÍA ESPAÑOLA DE FINANCIACIÓN DEL DESARROLLO, COFIDES, S.A., S.M.E.
Consolidated Financial Statements for year ending 31st December 2017
1. Nature, Business Activity and Composition of the Group
Compañía Española de Financiación del Desarrollo, COFIDES, S.A., S.M.E. (hereafter the Company or
COFIDES), is a state-owned trading company whose corporate function is to provide financial support
for private, direct investment projects with a Spanish interest and which are carried out in developing or
emerging countries.
In order to fulfil its corporate purpose, the Company has, as well as its own resources, several signed
financing agreements with other public or multilateral financial entities.
Pursuant to Act 66/1997 of 30th December, COFIDES manages the Fund for Foreign Investment (FIEX
– Fondo para Inversiones en el Exterior) and the Fund for Small and Medium-Sized Enterprise Foreign
Investment Operations (FONPYME - Fondo para Operaciones de Inversión en el Exterior de la Pequeña
y Mediana Empresa), on its own behalf as well as on behalf of such funds. In addition, fund activities
and operations are governed by Royal Decree 1226/2006 of 27th October, which supersedes previous
legislation, which in turn has also been amended by Royal Decree 321/2015 on 24th April. Provisioned
yearly from the national budget, both FIEX and FONPYME pursue the internationalisation of Spanish
companies and the Spanish economy in general through syndicated financial instruments under co-
financing arrangements with project sponsors.
The 14/2013 Law, created to support entrepreneurs and their internationalisation, incorporated the
authority of COFIDES to assist in the identification and analysis of investment projects likely to be financed
through the Fund for the Internationalisation of Enterprises (MSIF) and managed by the State Secretariat
for Trade of the Ministry of Economy, Industry and Competitiveness.
The Act was amended by Final Provision Two of the 8/2014 Act, of 22nd April, and contemplates
State coverage of the internationalisation risks to the Spanish economy and also that the FONPRODE
management, including analysis, planning, negotiation and monitoring of aid under the Fund, would be the
responsibility of the Ministry of Foreign Affairs and Cooperation, through the Secretary of State responsible
for international development cooperation and the Spanish Agency for International Development
Cooperation, supported by the Compañía Española de Financiación del Desarrollo (COFIDES). The approval
of this Act implies acknowledgement that COFIDES is a Spanish Development Finance Institution as well
as having a role within the bilateral Association of European Development Finance Institutions (EDFI). The
approval of the Regulations defines COFIDES tasks in the support of the management of FONPRODE,
regulated in Article 8 of Royal Decree 597/2015 on 3rd July where the Regulations of the Promotion of the
Development Fund was approved.
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Since May 2016 the Company has been an accredited entity of the European Union (EU), which allows it to
indirectly manage the community budget. Therefore, COFIDES may assume the role of main co-financer
in Blending operations, a financing instrument of the European Union which is articulated through the
combination of EU grants with loans or equity from accredited public and private financiers.
The company's registered office for business and tax purposes is located at Paseo de la Castellana, 278,
3rd floor, Madrid, Spain.
2. Basis of Presentation
The annual accounts have been prepared in accordance with the General Accounting Plan approved by Royal
Decree 1514/2007 of 16th November, which was modified by Royal Decree 602/2016 of 2nd December 2016,
along with the rest of the current commercial legislation.
The annual accounts have been prepared by the Company Directors for submission for approval of the General
Shareholders' Meeting, and it is estimated that they will be approved without any modification.
The figures included in the annual accounts are expressed in thousands of euros, unless otherwise stated.
2.1 True and accurate view
The financial statements were drawn up from COFIDES financial records. The 2017 financial statements were
prepared according to the commercial legislation in force and in accordance with the standards established
by the Spanish General Accounting Plan to provide a true image of the assets and the financial situation as of
December 31, 2017 and of the results of its operations, the changes in equity and cash flows corresponding to
the year ending on that date.
The Company's Directors deem that the financial statements for 2017 will be approved by the General Meeting
of Shareholders with no amendments whatsoever.
2.2 Data comparability
The annual accounts show, for each of the items in the balance sheet, the profit and loss account statement,
equity changes statement, cash flow statement and the report, as well as the figures for 2017, those
corresponding to the previous year, that were part of the annual accounts for 2016, approved by the General
Shareholders' Meeting on 26th May 2017.
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2.3 Critical aspects of the valuation and estimation of uncertainties and relevant judgements in the application of accounting policies
The preparation of the annual accounts requires the application of relevant accounting estimates and the
making of judgments, estimates and hypotheses in the process of applying the Company's accounting policies.
The following is a summary of the factors that have implications for discretion or complexity or in which the
assumptions and estimates have a significant impact on the preparation of the financial statements.
Impairment losses adjustments
One of the specific tasks of the Company´s Investment & Portfolio Management Division and Risk Division
is to supervise and manage the risks involved in its commercial financial operations as well as to analyse the
impairment of such financial assets throughout the year (see Note 4.6.6).
2.4 Functional currency and reporting currency
The Company presents its financial statements in thousands of euros, rounded to the nearest thousand, with
this being the functional and reporting currency of the Company.
3. Distribution of earnings
3.1 Distribution of Earnings
The distribution of earnings for the year ending on 31st December 2016, proposed by the Directors and approved
by the General Meeting of Shareholders on 27th May 2017, was as itemised below:
2016
Euros
Basis for distribution
Yearly earnings 8,504,998.65
Distribution
Dividend distribution 1,311,000.00
Legal Reserve -
Capital Reserve (*) 1,045,261.46
Voluntary Reserve 6,148,737.19
TOTAL 8,504,998.65
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The proposal for profit distribution for the year ended 31st December 2017, prepared by the Directors and
pending approval by the General Meeting of Shareholders, consists of:
2017
Euros
Basis for distribution
Yearly earnings 8,805,586.72
Distribution
Dividend distribution 1,311,000.00
Legal Reserve -
Capital Reserve (*) 719,400.00
Voluntary Reserve 6,775,186.72
TOTAL 8,805,586.72
(*) In compliance with the requirements of Article 25 of Law 27/2014, of 27th November, related to corporate income tax and with regard
to the capital reserve, as part of the profit distribution for 2017, an allocation from the positive results for the year amounting to €719,400
(€1,045,261.46 in 2016) to the Capital Reserve is proposed (Note 17).
3.2 Limitations on dividend payments
10% of the Company's yearly profit must be earmarked for legal reserves until the funds provisioned amount
to at least 20% of its share capital. Until that 20% minimum is reached, the funds in this reserve cannot be
distributed among the Company's shareholders (Note 13).
Once the sums specified by law or the by-laws are covered, dividends may only be distributed against the
year's profit or freely available reserves providing the net equity, as a result of the proposed dividend payment,
does not slide below the share capital. To this effect, the profit directly posted as net equity may not be directly
or indirectly used for dividend payments. If previous years' losses lowered the Company's net equity to less
than the value of its share capital, any profit must be earmarked to offset such losses.
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4. Valuation Standards
The valuation standards used by the Company to draw up these financial statements are described below:
4.1 Intangible assets
Intangible assets are initially valued at their purchase price, this being the acquisition price or the production cost.
After the initial valuation, the intangible assets are valued at its cost less any accumulated depreciation and any
accumulated impairment losses.
The useful lives of intangible assets are assessed individually to be either finite or indefinite.
� 4.1.1 Commercial Property
This entry allocates the corresponding amount to the name or trade name of the Company.
� 4.1.2 Software
Software is registered at its purchase price. Maintenance costs are written when incurred.
� 4.1.3 Service life and amortisation
Intangible assets are amortised by systematically allocating the amortisable amount evenly across the service
life by applying the following criteria:
Amortisation Method
Estimated service life (years)
Commercial Property Straight-line 10
Software Straight-line 4
For all purposes, the amortisation amount is the cost of acquisition less, if applicable, the residual value.
The Company reviews the residual value, service life and amortisation method of intangible assets at least
yearly, at the end of the financial year. Any amendments in the criteria, if any, once established are recognised
as a change in the estimate.
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� 4.1.4 Impairment of non-current assets
The Company assesses and corrects intangible assets and reversal of impairment losses on intangible assets in
accordance with the criteria set out in Note 4.3.
4.2 Tangible assets
� 4.2.1 Initial recognition
Tangible assets are stated at their acquisition price or cost of production and are carried on the balance sheet at
that value less depreciation and, if applicable, any accumulated impairment losses.
� 4.2.2 Amortisation
Non-current tangible assets are amortised by distributing the amortisable amount in a systematic way throughout its
service life. For these purposes, the amortisable amount is the cost of acquisition less its residual value. The Company
determines the amortisation costs for each asset.
Non-current tangible assets are amortised in accordance with the criteria shown below:
Amortisation method
Estimated service life (years)
Other facilities Straight-line 10
Furnishings Straight-line 10
Computer hardware Straight-line 2-4
The Company reviews the residual value, service life and depreciation method for tangible assets at the end of
each reporting period. Amendments in the initially established criteria are recognised as a change of estimate.
� 4.2.3 Subsequent costs
After initial recognition of the asset, only costs that entail an increase in its capacity, productivity or service life are
capitalised. In this regard, the routine maintenance costs for non-current tangible assets are expensed against
income when they are incurred.
� 4.2.4 Impairment of asset value
The Company assesses and corrects non-current tangible assets and reversal of impairment of such losses
pursuant to the criteria set out in Note 4.3.
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4.3 Impairment of the value of non-financial assets subject to amortisation or depreciation
The Company follows the criterion of evaluating the existence of indications that might denote potential
impairment of the value of non-financial assets subject to amortisation or depreciation, in order to verify
whether the carrying value of the aforementioned assets exceeds their recoverable value, understood as the
higher of their fair value, less selling costs and value-in-use.
Once the impairment loss valuation or its reversal is recognised, the depreciation of the following years is
adjusted taking into consideration the new book value.
Nevertheless, if specific circumstances of any given asset reveal an irreversible loss, such loss is directly
recognised in losses on non-current assets and shown as such on the profit and losses account.
Impairment losses are entered in the profit and loss account.
4.4 Non-current assets held for sale
The Company classifies in the “Non-current assets held for sale” heading those assets whose carrying value
will be recovered principally through a sales transaction rather than through continued use, when the following
requirements are met:
› The assets are available for immediate sale in their present condition subject only to usual and customary
terms for their sale.
› Their sale is highly likely.
Non-current assets held for sale are valued at their lower book value and their fair value less cost of sale, except
for deferred tax assets. These assets are not depreciated and, where necessary, are adjusted to ensure that the
carrying amount is not higher than the fair value less cost of sale.
The related liabilities are classified under “Liabilities associated with non-current assets held for sale”.
4.5 Leases
Leases in which the contract essentially transfers all risks and benefits inherent in the legal ownership of the
asset are classified as financial leases; all others are classified as operational leases.
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� 4.5.1 Lessor accounting
Revenues from operational leases are registered in the profit and loss account upon accrual. The direct costs
attributable to the lease are included as an increase in the value of the leased asset and posted as an expense
during the term of the lease, applying the same criteria used for the recognition of rental income.
� 4.5.2 Lessee accounting
The Company has leased to third parties, under operating lease agreements, the premises where it carries out
its usual activity (head offices and representative office), as well as a vehicle used by the staff.
The fees resulting from operating leases, net of incentives received, are recognised as expenses on a straight-
line basis over the lease term.
4.6 Financial instruments
Classification and separation of financial instruments
Financial instruments are classified at the time of their initial recognition as a financial asset, a financial liability
or an equity instrument, in accordance with the economic substance of the contractual agreement and the
financial asset definitions, financial liability or equity instrument.
The Company classifies its financial instruments into different categories for valuation purposes, depending on
their characteristics and Management's intention when they are initially posted.
� 4.6.1 Loans and accounts receivable
Loans and accounts receivable are composed of trade and non-trade operations loans with fixed or determinable
receivables that are not listed on an active market. These assets are initially carried at fair value, including the
transaction costs incurred, and are subsequently valued at their amortised cost, calculated using the effective
interest rate method.
Nonetheless, financial instruments with no established interest rate, with a maturity under one year or whose
repayment is expected in the short term and not significantly affected by possible updating, are appraised at
face value.
� 4.6.2 Investments held through maturity
Investments held through maturity are debt securities with a set maturity date, fixed or determinable receivables,
which are traded on an active market and which the Company fully intends and has enough capacity to hold to
maturity other than those classified in other categories. The valuation criteria applicable to financial instruments
classified in this category are those applicable to loans and receivables.
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� 4.6.3 Other financial instruments carried at fair value
Investments in companies are initially carried at cost, which is the same as the fair value of the consideration
given including the transaction costs incurred, and subsequently valued at cost, less any accumulated
impairment losses.
Although the company holds stakes of over 20% in some firms, as these are support investments subject to
repurchase agreements by a specific deadline, they are not consolidated in company accounts. Consequently,
they are neither regarded as long-term investments, nor are their management, which is not incumbent upon
the company, integrated in COFIDES' overall strategy.
� 4.6.4 Interest
Interest is recognised by the effective interest rate method and dividends when the right to receive them is
established.
� 4.6.5 Derecognition of financial assets
Financial assets are subject to derecognition from the books when the rights to receive related cash flows
thereto have expired or have been transferred and the Company has substantially transferred the risks and
benefits derived from its ownership.
The full retirement of a financial asset entails posting the profit or loss resulting from the difference between
its carrying amount and the sum of the consideration received, net of transaction costs. The assets obtained or
liabilities assumed and any deferred loss or gain in the company's recorded income and expense, in turn, are
included in its net equity.
� 4.6.6 Impairment of financial instrument value
A financial asset or group of financial assets becomes impaired, generating a loss, if objective evidence of
impairment is forthcoming as a result of one or more events that have occurred after the initial recognition of the
asset and that event or events causing the impairment to have an impact on the estimated future cash flows of
the asset or group of financial assets, which can be accurately estimated.
On 28th June 2017 the Board of Directors approved an update of the hedging risk coverage policy, which is based
on the principles of the Bank of Spain. The implementation of this new policy resulted in the following new
operating line:
› The coverage of impairment risk is applicable to all operations with the only exception being open price
operations so that, in accordance with the accounting plan, the impairment of these operations is determined
by the difference between the cost of acquisition and the value of the share which, in the absence of a reliable
market rate, will be similar to the net book value of the company involved.
› This policy is based on the targeted risk analysis of every operation whose conclusions are limited by assigning
a set level of internal rating, except in the case of doubtful operations for late payment where the variable
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to consider is the age of the debt. Once qualified, the level of impairment is collectively estimated for each
category of internal rating -internal rating of the operation before considering guarantees- and is presented
on a chart which assigns a level of impairment for each rating category.
The impairment risk coverage in doubtful assets follows a general treatment distinguishing between debts
of 3 to 6 months, 6 to 9 months, 9 to 12 months and over 12 months by applying percentages of 25%, 50%,
75% and 100% to each of these scales respectively.
In the event of country risk operations, the depreciation of value will be maintained according to its solvency
as long as it is the same or higher than that which would correspond to the risk country.
› The policy also provides the possibility to estimate the amount of impairment individually (individual risk
estimation) for the portfolio operations classified as Special Surveillance and Doubtful. Under this assumption,
the impairment of the applicable value will be determined based on the specific report issued and supported
by the Investment & Portfolio Management division and/or the General Secretariat.
› In the case of real guarantees being provided and that their valuation and assessment are considered
acceptable, the applicable general framework will take into account the amount of risk lessened by the value
of the guarantee.
Rating Percentage employed in 2016
Percentage employed in 2017
A 0% 0.20%
B+ 0.75% 0.20%
B 1.88% 0.20%
B- 2.25% 0.20%
C+ 4% 4%
C 10% 10%
C- 20% 20%
DM3 25% 30%
DM6 50% 70%
DM9 75% 80%
DM12 100% 90%
DM15 100% 95%
DM18 100% 100%
Impairment loss or reversal of loss is posted in the profit and loss account.
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4.7 Financial liabilities
� 4.7.1 Debits and payables
These items include financial liabilities generated by the purchase of goods and services for the Company's
business and non-trade operation debits other than derivatives.
When initially posted on the balance sheet, they are carried at fair value which, barring evidence to the contrary,
is the transaction price, i.e. the fair value of the consideration received, adjusted for any transaction costs directly
attributable thereto.
After the initial post, these financial liabilities are valued at their amortised cost. The interest accrued is entered
in the profit and loss account in accordance with the effective interest rate criterion.
That notwithstanding, trade operation debits with a maturity of not over one year that have no contractual
interest rate, as well as outlays demanded by third parties on holdings whose sum is expected to be paid in
the short term, are valued at their face value when the impact of failure to update cash flows is regarded as
negligible.
� 4.7.2 Security deposits
Security deposits established as a result of leases, are valued in accordance with the criteria described for
financial instruments.
� 4.7.3 Retirements and modifications in financial liabilities
The Company retires all or part of a financial liability when it meets the obligation inherent in the liability
or is legally dispensed from the essential responsibility incident thereto, by virtue of a court ruling or by
the creditor.
Any difference between the carrying value of the financial liability, or any part thereof, that is cancelled or
assigned to a third party, and the consideration paid, including any asset assigned other than cash or the liability
assumed, is posted to the profit and loss account.
4.8 Foreign exchange transactions, balances and flows
Foreign exchange transactions are converted to euros at the exchange rate in effect on the date of the transaction.
Monetary and non-monetary assets and liabilities denominated in foreign currencies are converted to euros at
the exchange rate in effect at year end.
Non-monetary assets carried at fair value are converted to euros at the exchange rate in effect at year end.
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In the cash flow statement, flows from foreign exchange transactions are converted to euros at the exchange
rate in effect on the date of the transaction.
The positive and negative differences arising in foreign currency transaction settlements and in the conversion
to euros of monetary assets and liabilities denominated in foreign currency are booked against the results.
Exchange rate losses or gains on non-monetary financial assets and liabilities assessed at fair value are posted
together with variations in such fair value. That notwithstanding, the exchange rate variation component in
non-monetary financial assets denominated in foreign currency is booked against results when the assets are
classified as sellable and fair value hedging is in place for such components. The rest of the variation of fair value
is posted as described in Note 4.6 Financial instruments.
4.9 Cash and other cash-equivalent liquid assets
This item includes cash at hand and in current accounts and deposits, as well as temporary acquisitions of
assets that meet all the following requirements:
› They can be converted to cash.
› Their maturity at purchase was not over three months.
› They are subject to no significant risk of change in value.
› They form part of the Company's standard cash management policy.
For the intents and purposes of cash flow, any overdrafts forming part of the Company's cash management
practice are carried as less cash and other cash-equivalent liquid assets.
4.10 Short-term remuneration for employees
The expected cost of short-term remuneration is posted as the services that afford employees entitlement
thereto are rendered.
The Company books the expected cost of employee profit-sharing or incentive plans when a present, legal
or implicit obligation exists as a result of past events and the value of the obligation can be reliably estimated.
4.11 Severance payments
Severance payments are accounted as soon as a detailed formal plan is in place and the affected staff has been
notified of the intention to terminate the employment relationship, either because the plan is underway or
because its main characteristics have been announced.
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In accordance with current labour legislation, the Company is required to pay compensation to those employees
with whom, under certain conditions, their employment relationships are terminated. Severance payment that
can be reliably quantified is expensed in the year in which the company creates a valid expectation in respect
of the parties concerned.
4.12 Provisions
Provisions are posted: when the Company incurs an obligation, be it legal, contractual, implicit or tactical, as
the result of a past event; when an outlay of resources from future earnings is likely to be needed to meet such
obligations; and when the sum of the obligation can be reliably estimated.
The financial effects of such provisions are posted in the profit and loss account as financial expenses.
Provisions include neither the fiscal effects nor the earnings expected from the sale or abandonment of assets.
Provisions are reversed against results when it becomes unlikely that outflows will be required to cancel the
obligation.
4.13 Tax on earnings
Expenses or revenues under this item include both current and deferred taxes on earnings.
Current tax assets or liabilities are assessed as the sums expected to be paid to or refunded by tax authorities,
further to the legislation and tax rates in effect or approved and pending publication at the end of the financial
year.
The current or deferred tax on earnings is posted against results unless it is the consequence of a combination
of operations or of a transaction or economic event recorded against equity in the same or another reporting
period.
Timing adjustments are systematically posted, barring the exceptions laid down in the existing legislation, while
deductible timing adjustments are recorded whenever they are likely to be offset by future positive taxable
income.
Deductible timing adjustments are recorded whenever future positive taxable income is likely to be large
enough to offset such adjustments.
Deferred tax assets and liabilities are estimated at the tax rates that will be applicable in the years when the
assets are expected to be refunded or the liabilities paid.
Deferred tax assets and liabilities are carried on the balance sheet as non-current assets or liabilities, regardless
of the expected refund or payment date.
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4.14 Classification of current and non-current assets and liabilities
The Company classifies assets and liabilities as current when it expects settlement to be forthcoming in its
normal operating cycle. They are recorded primarily for the purposes of negotiation and their expected date of
liquidation is within twelve months of closing.
Financial liabilities are classified as current when they must be settled within twelve months of closing, even
if the original term is for a period of more than twelve months, and when long-term refinancing or payment
restructuring arrangements are in place that expire after the end of the financial year but before the financial
statements are prepared.
4.15 Revenues and expenses
Revenues and expenses resulting from increases or decreases in the Company's resources are recorded on an
accrual basis in the target year, providing the sum thereof can be reliably determined.
Ordinary management revenues are booked at the fair value of the consideration received or to be received, in
proportion to the percentage of the service provided by the end of the financial year.
The Company posts the ordinary revenues and costs associated with the operations in which it acts as
manager, collecting the sums involved on behalf of the funds managed. In these operations, only the
fees earned are booked as ordinary revenues. It posts ordinary revenues and related costs, including both
fees and interest, associated with the loans granted against its own resources in keeping with the same
criteria.
4.16 Related party transactions
Related party transactions are booked in accordance with the valuation standards described above.
The costs of related party operations are suitably accommodated. The Company's Directors deem that they
entail no risk of losses that would generate significant tax credits.
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5. Intangible Assets
The detail and movements of the various items that make up intangible assets are as follows:
2017
Euros (‘000) Commercial Property Software
Advance on computer
softwareTotal
Cost on 1st January 2017 - 851 15 866
Acquisitions - - 15 15
Retirements - - - -
Transfers - - - -
Cost on 31st December 2017 - 851 30 881
Accumulated depreciation on 1st January 2017 - (789) - (789)
Acquisitions - (34) 0.00 (34)
Retirements - - 0.00 -
Transfers - - - -
Accumulated depreciation on 31st January 2017 - (823) - (823)
Net carrying value on 31st December 2017 - 28 30 58
2016
Euros (‘000) Commercial Property Software
Advances on computer
softwareTotal
Cost on 1st January 2016 - 1,234 15 1,249
Acquisitions - 1 - 1
Retirements - (384) - (384)
Transfers - - - -
Cost on 31st December 2016 - 851 15 866(1,134) - (1,134)
Accumulated depreciation on 1st January 2016 - (39) - (39)
Acquisitions - 384 - 384
Retirements - - - -
Transfers - (789) - (789)
Accumulated depreciation on 31st January 2016 - 62 15 77
Net carrying value on 31st December 2016 - 62 15 77
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5.1 Total depreciated assets
The cost of intangible assets that are fully depreciated and still in use at 31st December is as follows:
Euros (‘000) 2017 2016
Software 725 700
TOTAL 725 700
5.2 Insurance
The Company has a number of insurance policies to cover the risks to its intangible assets. The cover provided
by these policies is considered sufficient.
5.3 Other information
No purchase-sale transactions involving non-current assets were concluded with group companies.
At 31st December 2017, there were no commitments related to intangible assets. The same state existed at 31st
December 2016.
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6. Tangible Assets
The entries comprising "Tangible non-current assets" are summarised below:
2017
Euros (‘000) Other facilities Furnishing Computer
hardware Transport Total
Cost on 1st January 2017 836 359 232 2 1,429
Acquisitions 3 3 54 - 60
Retirements (18) (9) (24) - (51)
Transfers - - - - -
Cost on 31st December 2017 821 353 262 2 1,438
Accumulated depreciation on 1st January 2017 (135) (134) (136) - (405)
Acquisitions (80) (30) (43) (1) (154)
Retirements 18 11 27 - 56
Transfers - - - - -
Accumulated depreciation on 31st January 2017 (197) (153) (152) (1) (503)
Net carrying value on 31st December 2017 624 200 110 1 935
2016
Euros (‘000) Other facilities Furnishing Computer
hardware Transport Total
Cost on 1st January 2016 826 354 313 2 1,495
Acquisitions 19 4 34 - 57
Retirements (8) (0) (116) - (124)
Transfers - - - - -
Cost on 31st December 2016 837 358 231 2 1,428
Accumulated depreciation on 1st January 2016 (54) (103) (220) - (377)
Acquisitions (81) (31) (32) - (144)
Retirements - - 116 - 116
Transfers - - - - -
Accumulated depreciation on 31st January 2016
(135) (134) (136) - (405)
Net carrying value on 31st December 2016 702 224 95 2 1,023
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6.1 Totally depreciated assets
The cost of intangible assets that are fully depreciated and still in use at 31st December is as follows:
Euros (‘000) 2017 2016
Other facilities 30 20
Furnishing 66 69
Computer hardware 65 84
TOTAL 161 173
6.2 Insurance
The Company has a number of insurance policies to cover the risks to its intangible assets. The cover provided
by these policies is considered sufficient.
6.3 Other information
No purchase-sale transactions involving non-current assets were concluded with group companies.
At 31st December 2017 and 2016, the Company had no commitments to purchase tangible assets.
7. Non-current assets held for sale
On 28th February 2012, Commercial Court 2 of Bilbao awarded the Company a property located in the
municipality of Munguia, Vizcaya, following mortgage foreclosure proceedings in connection with the
repayment of a loan. The award value of the property was €1,327,000. The property was not leased to third
parties.
On 19th April 2012, the Company took formal possession of the property pursuant to an instrument placed on
public record at the Gernika-Lumo land office. The property was booked at its fair value (€1,356,000) on that
date.
Inasmuch as Company Management is actively promoting the sale of the property, it appears on the balance
sheet under the caption “Non-current assets held for sale” and appears similarly detailed at 31st December 2017.
The estimated sale cost related to this asset, amounting to €140,000 is listed on the balance sheet under the
item Liabilities associated with non-current assets held for sale, being the amount detailed at 31st December
2017 €40,000 (€40,000 in 2016).
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On 31st December 2015, the Company considered, due to a new land valuation commissioned from a specialist
company, that the valuation of the property had been reduced to €725,000 and therefore applied an
impairment loss amounting to €50,000.
On 31st December 2017, the Company considered that the valuation of the property amounting to €725,000
was reasonable.
8. Risk policy and management
8.1 Financial risk factors
The Company's business is exposed to foreign currency, credit, liquidity and cash flow interest rate risks.
Globally speaking, its risk management focuses on the uncertainty of the economic environment and
attempts to minimise the potentially adverse effects of that environment on its own financial profitability.
Active risk management comes under the remit of the Company's Investment & Portfolio Management
team as well as its Risk management team, in accordance with the policies approved by the Board of
Directors and more specifically its Operating Criteria and the 2016-2019 Strategic Plan including the
recent revisions, and this has greatly strengthened its control mechanisms, reporting and monitoring of
financial risk. The Investment & Portfolio Management team identifies, evaluates and details the financial
risks of new operations proposed to the Company and manages financial risks of current operations to
be able to better manage future mitigation. The Risk team manages the portfolio risk and monitors each
company's compliance with their own internal risk criteria, both individually and globally. All of the above
and for accounting purposes, in accordance with the provisions of section 4.6.6.
� 8.1.1 Credit risk
The Company, in accordance with its own Operating Criteria, has not incurred any significant burden of credit
risk. The Company has policies to properly evaluate that its financing operations are carried out with clients with
an adequate credit history.
Corrections in valuations due to client insolvency entail a reasonable amount of discretion on the part of
Management, as well as a revision of individual balances based on client credit ratings, current market trends
and a historical analysis of pooled insolvencies. The country-specific component in corrections of individual
valuations is based on the country's credit rating drawn from information provided by external agencies. In
corrections of valuations deriving from aggregate analysis of default history, a reduction in the size of the
balance implies a reduction in valuation corrections, and vice-versa.
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� 8.1.2 Foreign currency risk
Since the Company operates internationally, some of its operations are exposed to foreign currency risk,
specifically the US dollar. Foreign currency or exchange rate risk is incurred in forward trade transactions,
booked assets and liabilities, and net investments in business abroad.
The Company has a refinancing line denominated in US dollars with the Official Credit Institute (Instituto de
Crédito Oficial), one of its shareholders, to mitigate its foreign currency risk. Under this formula, all loans to its
clients are refinanced under borrowings charged to that line.
� 8.1.3 Liquidity risk
The Company conducts prudent liquidity risk management, maintaining sufficient cash and marketable
securities, guaranteeing the availability of financing for a sufficient sum under credit facility commitments, and
retaining sufficient capacity to unwind market positions.
8.2 Operational risk factors
Operational risk is one form of risk that can cause losses due to human error, inadequate or defective internal
processes and system failures and as a consequence of external events. This definition includes legal risk, but
excludes strategic risk and/or business risk, and the reputational risk for the Company.
Operational risk is inherent in all activities, products, systems and processes, and its origins are varied
(processes, internal and external fraud, technology, human resources, business/commercial practices,
suppliers). The operational risk management is integrated into the structure of global risk management of
the Company.
In this sense, the Company has an integrated methodology of internal control with policies that cover personnel
management and training, investment in information technologies and policies for monitoring credit operations,
a methodology developed by the different departments of the Company with the drive of the Division of Control,
Internal Audit and Quality and Presidency, of which it depends. This division performs monitoring and periodic
internal audits of these policies and established processes. In addition, it ensures regulatory compliance and adoption
of best practice in Compliance, mainly in cooperation with the General Secretariat, who guards the legal aspects of
the Company.
9. Operational leases - lessee
The Company has leased to third parties, under operating lease agreements, the premises where it conducts its
usual business (head offices and representative office), as well as a vehicle used by its staff.
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The rent paid under operating leases and booked as a cost is shown below:
Euros (‘000) 2017 2016
Buildings 846 843
Vehicles 8 9
Others 27 27
TOTAL 881 879
The minimum future payments in euros for non-cancellable operating leases are given below:
Euros (‘000) 2017 2016
Up to one year 687 687
Between one to five years 2.748 2.748
Over five years - 687
TOTAL 3.435 4.122
10. Equity instruments investments
The fair value of equity instrument investments classified as "Other financial instruments carried at fair
value" can be broken down as shown in the table below:
Euros (‘000) 2017
Company Country Business % Holding Cost ImpairmentNet carrying
value onholding
European Financing Partners Luxembourg (i) 15.38 6 - 6
Interact Climate Change Facility, S.A. Luxembourg (ii) 7.69 6 - 6
AURICA III FCR Spain (iii) 3.14 1,105 (51) 1,054
SOCIEDAD MERCANTIL ESTATAL COFIDES Capital Riesgo SGEIC, S.A
Spain (iv) 100 150 - 150
AUTOPISTA DEL NORDESTE, S.A.S. Colombia (v) 0.07 205 (22) 183
TOTAL 1,472 (73) 1,399
(i) Financial intermediation to Asian, Caribbean and Pacific countries(ii) Financial intermediation in environmental projects for Asian, Caribbean and Pacific countries(iii) Financial intermediation of projects with a profile oriented towards its international expansion(iv) Investment management of one or more equity capital entities(v) Infrastructure, transport
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Euros (‘000) 2016
Company Country Business % Holding Cost ImpairmentNet carrying
value onholding
European Financing Partners Luxembourg (i) 15,38 6 - 6
Interact Climate Change Facility, S.A.
Luxembourg (ii) 7,69 6 - 6
AURICA III FCR Spain (iii) 15 133 - 133
SOCIEDAD MERCANTIL ESTATAL COFIDES Capital Riesgo SGEIC, S.A
Spain (iv) 100 150 - 150
TOTAL 295 - 295
(i) Financial intermediation to Asian, Caribbean and Pacific countries
(ii) Financial intermediation in environmental projects for Asian, Caribbean and Pacific countries
(iii) Financial intermediation of projects with a profile oriented towards its international expansion
(iv) Investment management of one or more equity capital entities
The equity instruments listed in the above tables for 2017 and 2016 whose fair value cannot be reliably estimated
are valued at cost less the cumulative sum of any corrections made to adjust for impairment of their value.
Moreover, all equity capital operations are subject to a minimum divestment charge, established in agreement
with the respective shareholders.
The functional currency of the shares abroad is the currency of the countries in which they are domiciled.
Likewise, the net investment in holdings concurs with the book value of the investment.
The Company has signed funding agreements with other European development institutions:
� EUROPEAN FINANCING PARTNERS, S.A. (EFP)
This is a company formed by the Development Finance Institutions associated to EDFI including COFIDES,
together with the European Investment Bank (EIB) with the aim of promoting sustainable development of the
private sector and the strengthening of the cooperation of EDFIs and the EIB. In 2016, the European Financing
Partners (EFP) expanded its geographical scope of activity to finance projects in countries included in the list
of OECD Official Development Assistance (ODA) recipients. To date, the EFP has exclusively funded projects
in ACP countries (Africa, Caribbean, Pacific).In the group of rounds, COFIDES contributed a total of 45 million
Euros through its own resources and the FIEX Fund.
At 31st December 2017, the EFP funding scheme, driven collectively between the European Investment Bank
(EIB) and the bilateral European Development Finance Institutions equivalents of COFIDES, committed a total
of €476.86 million in 36 projects located in 14 different countries. The participation of COFIDES and FIEX
resources in these projects at the end of 2017 translated into a commitment volume of €16.88 million in 27
operations in 12 different countries, 10 of which belong to the geographical area of sub-Saharan Africa.
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� INTERACT CLIMATE CHANGE FACILITY, S.A. (ICCF)
During 2011, the Company, together with other European development institutions (European Investment Bank,
EIB; Agence Française de Développement, AFD; and the bilateral European Development Finance Institutions)
founded INTERACT CLIMATE CHANGE FACILITY S.A. (hereafter ICCF). The purpose of this institution is to
finance private sector investment projects that prevent or reduce greenhouse gas emissions in ODA (Official
Development Assistance) countries.
At 31st December 2017 ICCF had committed a total of €348.87 million in 22 projects in 12 different countries.
By the end of 2017, COFIDES had committed a total of €11.23 million to ICCF projects in 22 operations in 11
different countries, all of which are countries receiving Official Development Assistance.
� AURICA III FCR
Aurica III FCR is an investment in a newly created fund to provide financing through capital expansion for
Spanish companies with a profile oriented towards international expansion. The duration of the fund is ten
years.
The fund was founded in June 2016, and during 2017 it has completed two investments and has approved a
third-party pending formalisation.
� COFIDES CAPITAL RIESGO SGEIC, S.A.
A public limited company of Spanish nationality has been constituted with the title, SOCIEDAD MERCANTIL
ESTATAL COFIDES CAPITAL RIESGO, SGEIC, S.A.
The Company's main corporate purpose is investment management of one or more risk capital companies
(RCCs), as well as for the control and management of their risk. In addition, the Company will carry out duties
described in article 42.4 of the LECR. As a supplementary activity, it will be able to perform advisory tasks to
non-financial companies defined in accordance with Article 7 of the LECR.
This Company has a share capital of €150,000, following an initial contribution of €125,000 and a subsequent
capital increase of €25,000.
� AUTOPISTA DEL NORDESTE, S.A.S.
Ortiz Construcciones y Proyectos is the parent company of a multinational business group whose business
focuses on the construction sector (civil engineering, construction, EPC energy), although in recent years they
have started a strategic operation based on the internationalisation and diversification of their business mix.
A concession agreement granted in 2014 as part of the bidding process of the first wave of 4G pathways in
Colombia (4G Programme).
The term of the concession is 25 years, with the option of extending it for another four years if the revenue
expected and stipulated in the concession agreement is not reached. The term for construction is 5-6 years.
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This concession was granted in December 2014 to a consortium formed by Ortiz Construcciones y Proyectos
(25%), KMA (25%), Valorcon (25%) and Equipo Universal (25%).
The operation consists of providing financial support to the Ortiz Group by contributing funds to the concessionary
company Autopistas del Noreste in the form of capital, subordinated debt and counter guarantees of capital
and subordinated debt.
COFIDES/FIEX acquired shareholder positions in the concessionary company in July 2017, when the trading
and payment of shares took place.
The changes in the amount of impairment losses on loans at 31st December are as follows:
Euros (‘000) 2017 2016
Cost 1,472 295
Net Impairment Losses (73) -
Net carrying value 1,399 295
Changes in impairment losses
(73) -
Euros (‘000) 2017 2016
Non-current Non-current
Impairment loss at 1st January - -
Net increases - -
Net decreases (73) -
Pay offs - -
Transfers to debtors - -
Accumulated impairment loss at 31st
December(73) -
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11. Financial Assets
The composition of the Company's "Financial Assets" on 31st December was as follows:
Equityinstruments
(Note 10)Debit securities
Loans,derivativesand others Total
Euros (‘000) Non-current Current Non-
current Current Non-current Current Non-
current Current
Financial year 2017:
Loans and accounts receivable
1,399 - 58,009 14,969 9,715 22,869 69,123 37,838
Investments held through maturity
- - - - - - - -
Total 1,399 - 58,009 14,969 9,715 22,869 69,123 37,838
Financial year 2016:
Loans and accounts receivable
295 - 59,616 13,426 8,067 8,135 67,978 21,561
Investments held through maturity
- - - - - - - -
Total 295 - 59,616 13,426 8,067 8,135 67,978 21,561
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These sums are broken down on the balance sheet as follows:
Equityinstruments
(Note 10)Debt securities
Loans,derivativesand others
Total
Euros (‘000)Non-
currentCurrent
Non-current
CurrentNon-
currentCurrent
Non-current
Current
Financial year 017:
Long-term financial investments
Equity instruments 1,399 - - - - - 1,399 -
Loans to companies - - 58,009 - - - 58,009 -
Other financial instruments
- - - - 115 - 115 -
Accounts receivable, Funds
- - - - 9,600 - 9,600 -
Trade and other receivables
Accounts receivable - - - - - 2,907 - 2,907
Accounts receivable, Funds
- - - - - 9,110 - 9,110
Short-term financial investments
Loans to companies - - - 14,969 - - - 14,969
Interest accruing on loans to companies
- - - - - 352 - 352
Other financial instruments
- - - - - 10,500 - 10,500
Interest accruing on other financial assets
- - - - - - - -
Total 1,399 - 58,009 14,969 9,715 22,869 69,123 37,838
118
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11.1 Debt securities
� 11.1.1 Loans and accounts receivables
Loans are granted under financing agreements concluded with third parties to further private projects involving
Spanish interest and carried out in developing countries. In addition to using its own resources, the company
may grant these loans through financing agreements with other public financial institutions. The term of
these loans as well as the interest rate and any security required are individually stipulated in the agreement
concluded for each loan.
The variations in the loan figures in the target year are listed below:
2017 2016
Euros (‘000) Non-current Current Non-current Current
Cost on 1st January 63,867 14,104 63,572 16,635
Increases 21,697 - 16,911 -
Decreases (4,832) (14,104) (2,512) (16,635)
Transfer to short-term (15,537) 15,537 (14,104) 14,104
Cost on 31st December 65,195 15,537 63,867 14,104
Accumulated impairment loss on 31st December (7,186) (568) (4,251) (678)
Net book value on 31st December 58,009 14,969 59,616 13,426
At year-end 2017, the loans granted and outstanding amounted to €21,697,000 (€18,373,000 at year-end
2016).
Some of these debt instruments are formalised through the acquisition of shares in the companies that COFIDES
finances. Notwithstanding the above, given the repurchase conditions which are established, these operations
are deemed debt instruments and not equity instruments. The loans formalised under this classification are
detailed in the following:
Euros (‘000) 2017
Company Country Business % Holding Cost ImpairmentNet carrying
value onholding
Electrón Investment S.A. Panama (i) 2.67% 3,557 (142) 3,415
South East U.P. Power Transmission Company Ltd.
India (ii) 2,59% 4,053 (3,648) 405
Globalvia Chile SPA Chile (iii) 8,17% 5,027 (201) 4,826
TOTAL 12,637 (3,991) 8,646
(i) Construction, operation and maintenance of two electric power plants
(ii) Construction
(iii) Infrastructure, transport
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The list of yearly maturities for the loans is itemised below:
Euros (‘000) 2017 2016
Year 2017 - 14,104
Year 2018 15,537 15,005
Year 2019 15,222 13,583
Year 2020 13,365 10,975
Year 2021 8,333 24,304
Year 2022 subsequent years 28,275 -
Total 80,732 77,971
Generally, the loans granted by COFIDES are secured by real or personal collateral, depending on the case, to
mitigate the risk assumed.
The financial income and interest due (but not yet paid) on these loans during the year 2017 and 2016 was as
follows:
Euros (‘000) 2017 2016
Income accrued (Note 19.1) 2,276 2,253
Interest accrued on outstanding receipt (Note 11.2)
352 441
The changes in the amount of impairment losses on loans as of 31st December are as follows:
2017
Euros (‘000) Non-current Current
Impairment loss on 1st January (4,251) (678)
Net increases (2,935) 110
Net decreases - -
Payoffs - -
Transfers - -
Inactive provisions - -
Transfer to short-term/long-term - -
Accumulated impairment loss on 31st December
(7,186) (568)
The valuation corrections listed in the following table were calculated using the methodology applicable to
each operation as described in Note 4.6.6.
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11.2 Loans, derivatives and others - Loans and accounts receivable
The items under this heading on 31st December were as follows:
2017 2016
Euros (‘000) Non-current Current Non-current Current
Trade accounts receivable 9,600 12,017 7,950 7,694
Other financial investments:
Interest accruing on loans to companies (Note 11.1.1) - 352 - 441
Other financial instruments 115 10,500 117 -
Interest accruing on other financial assets - - - -
Total 9,715 22,869 8,067 8,135
� 11.2.1 Trade accounts receivable
The breakdown for trade accounts receivable is given below:
2017 2016
Euros (‘000) Non-current Current Non-current Current
Accounts receivable - 6,035 - 5,647
Accounts receivable, Funds 11,087 9,110 9,951 6,139
Other receivables - 2,169 - 1,301
Total 11,087 17,314 9,951 13,087
Impairment, trade accounts receivable (1,487) (5,297) (2,001) (5,392)
Total trade receivables 9,600 12,017 7,950 7,695
The entries in 2017 and 2016 in "Impairment of trade accounts receivable" are summarised below:
2017 2016
Euros (‘000) Non-current Current Non-current Current
Balance on 1st January (2,001) (5,392) (1,607) (4,720)
Net endowments 514 (316) (394) (677)
Transfers - - - -
Inactive provisions - - - -
Applications - 411 - 5
Balance on 31st December (1,487) (5,297) (2,001) (5,392)
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"Accounts receivable" refers primarily to the sums due and outstanding receipts on third party loans, related to
the operations specified in Note 11.1.1 above.
"Accounts receivable, Funds" includes accrued and outstanding management and other service charges in
connection with the FONPYME and FIEX funds.
� 11.2.2 Other financial assets
2017 2016
Euros (‘000) Non-current Current Non-current Current
Other financial assets
Guarantees 115 - 117 -
Deposits - 10,500 - -
Total 115 10,500 117 -
Non-current:
Other (non-current) financial instruments, includes €115,000 at year end 2017 (€117,000 at year-end 2016),
consisting primarily of security deposits established in connection with the Company's leases, as specified in
Note 9.
Current:
At year-end 2016, there were no bank charges for period of less than one year. In 2017, the detail was as follows:
Type Yearly interest rate
Date formalised Maturity date
Certificates of deposits
(Euros (‘000))
Interest accrued and outstanding
(Euros ('000))
Financial Year 2017
Time deposit Banco Sabadell
0.12% 26/10/2017 26/04/2018 5,000 -
Time deposit Banco Sabadell
0.1% 28/11/2017 28/02/2018 5,500 -
Totals 10,500 -
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11.3 Sums denominated in foreign currency
The breakdown of the total monetary financial instruments denominated in foreign currency (US dollars) is as
shown below:
Euros (‘000) 2017 2016
Long-term financial investments:
Loans to companies 3,816 4,838
Total non-current assets 3,816 4,838
Short-term trade and other receivables:
Accounts receivable 689 640
Short-term financial investments:
Loans to companies 625 766
Interest accruing on loans to companies 38 69
Cash and other cash equivalent assets
Cash in bank 12 220
Total current assets 1,364 1,695
Total financial instruments in foreign currency 5,180 6,533
EUR/USD exchange rate at year-end 2017 and 2016 was:
2017 2016
Exchange rate 1.194 1.054
12. Cash and Other Cash - Equivalent Liquid Assets
The cash and other cash-equivalent liquid assets at 31st December are as detailed below:
Euros (‘000) 2017 2016
Commercial and savings banks 19,863 28,606
Liquid short-term investments 10,500 -
Total 30,363 28,606
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13. Shareholder’s Equity
The composition and entries in "Shareholder's equity" are given in the statement on changes in equity.
13.1 Share Capital
The Company's share capital on 31st December 2017 and 2016 consisted of 6,555 registered, subscribed and
paid-up shares with a face value of €6,010.12 each. All shares have the same political and economic rights and
are freely transferable.
No restrictions on transference thereof.
The companies with direct holdings in the Company's share capital are listed below:
Shareholder % Holding Value
ICEX España Exportación e Inversiones 25.74% 10,139
Instituto de Crédito Oficial 20.31% 7,999
Banco Bilbao Vizcaya Argentaria, S.A. 16.68% 6,569
Banco Santander, S.A. 11.83% 4,664
Banco Popular 8.34% 3,288
Banco Sabadell, S.A. 8.33% 3,281
Empresa Nacional de Innovación, S.A. 7.63% 3,005
Corporación Andina de Fomento 1.14% 451
Total 100% 39,396
13.2 Legal reserve
Pursuant to Article 274 of the Spanish Corporate Enterprises Act, 10% of a company's yearly profit must be
earmarked for the legal reserve until the funds provisioned amount to at least 20% of the share capital.
Such funds may not be distributed and if used to offset losses, in the event that other reserves are insufficient
to cover this item, they must be replenished with future profits.
On 31st December 2017, the Company had not funded this reserve to the ceiling established by law.
Notwithstanding the above, the proposed distribution of profits for 2016 prepared by the directors (Note 3) has
not been considered for distribution to the Legal Reserve.
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13.3 Voluntary reserve
Voluntary reserves may be drawn on freely.
13.4 Capital reserve
At 31st December 2017 the Company had funded a capital reserve to a value of €1,575,000 (€530,000 in
2016). A breakdown of this €1,045,000 increase can be seen in Note 3 of this Report.
13.5 Information regarding the right of partner separation caused by the lack of dividend distribution (article 348 bis of the consolidated text of the Companies Capital Act)
During the last five years, dividends have been distributed in the range of 15% to 20% of the result of each of
them, except in 2011 where there was no distribution. Also, in 2017, the Company proposed to share a dividend
of €1,311,000 (Note 3).
At the annual general shareholders' meeting held on 29th March 2017, the proposal for the application of the
profit for the year 2016 was approved, in which the distribution of dividends was approved, and no shareholder
voted against such proposal.
14. Contingent Assets and Liabilities
The Company, together with its legal advisers, has classified success in a series of proceedings lodged primarily
to claim sums of outstanding receipts as likely or possible. It has consequently booked a provision for such sums
of outstanding receipts on 31st December 2017 and 2016 under impairment of receivables.
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15. Financial Liabilities
The composition of the Company's financial liabilities on 31st December was as detailed below:
Debts with financial institutions Derivatives and others Total
Euros (‘000) Non-current Current Non-
current Current Non-current Current
Financial year 2017:
Loans and accounts receivable
- 216 - 616 - 832
Total - 216 - 616 - 832
Financial year 2016:
Loans and accounts receivable
215 430 - 771 215 1,201
Total 215 430 - 771 215 1,201
15.1 Bank borrowings
The breakdown of accounts payable to financial institutions on 31st December is given below:
2017 2016
Euros (‘000) Non-current Current Non-current Current
CAF agreement - 69 - 47
ICO Line - 146 215 382
Accrued interest payable - 1 - 2
Total - 216 215 431
� ICO
On 1st June 2009, the Official Credit Institute (ICO) and COFIDES signed a Multi-Currency Financing Agreement
with a € 6 million ceiling. The deadline for drawing on this line was 31st May 2010.
On 23rd July 2010, the Official Credit Institute (ICO) and COFIDES signed a Multi-Currency Financing Agreement
with a € 4 million ceiling. The deadline for drawing on this facility was 22nd July 2011.
126
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A Master Agreement on General Financing Conditions for “2011 ICO Lines” was signed on 13th January 2011
between Spain's Official Credit Institute (ICO) and COFIDES, with COFIDES signing up to, on the same date,
the “Special Conditions” for the “ICO International Investment 2011” line. This line of financing was in force
until the end of 2011.
A Master Agreement on General Financing Conditions for “2012 ICO Lines” was signed on 2nd January 2012
between Spain's Official Credit Institute (ICO) and COFIDES with COFIDES joining, on the same date, to the
“Special Conditions” for the “ICO International Investment 2012” line. This line of financing was in force until
the end of 2012. For 2014 this line was not renewed.
The Company uses the financing obtained from the aforementioned facilities to grant loans to eligible
investment projects.
The most significant data on the sums drawn from ICO credit lines as of 31st December of the target year are
listed below:
31st December 2017
Multi-currency agreement
Draw deadlineGrace period
endsAgreement
expiresYear
Sum formalised
(Euros (‘000))
Sum drawn
(Euros (‘000))
Sum outstanding
(Euros (‘000))
Reference interest
rate
Differential (%)
2009 Agreement
14/06/2009 - 14/12/2018 2009 368 368 - LIBOR 6M
0.8
2010 Agreement
25/05/2011 24/04/2013 24/04/2018 2010 1,360 1,360 146 LIBOR 6M
2.5
Total in foreign currency (USD)
1,728 1,728 146
Total ICO loans 1,728 1,728 146
31st December 2016
Multi-currency agreement
Draw deadlineGrace period
endsAgreement
expiresYear
Sum formalised
(Euros (‘000))
Sum drawn
(Euros (‘000))
Sum outstanding
(Euros (‘000))
Reference interest
rate
Differential (%)
2009 Agreement
14/06/2009 - 14/12/2018 2009 368 368 98 LIBOR 6M
0.8
2010 Agreement
25/05/2011 24/04/2013 24/04/2018 2010 1,360 1,360 501 LIBOR 6M
2.5
Total in foreign currency (USD)
1,728 1,728 599
Total ICO loans 1,728 1,728 599
127
Activity Report 17
The financial expenses and accrued interest outstanding for these loans during the years 2017 and 2016 were
as follows:
Euros (‘000) 2017 2016
Accrued Costs (Note 20.1) 9 15
Accrued Interest (awaiting payment) (Note 15.1) 1 2
� Sums denominated in foreign currency
The breakdown of the total monetary financial liabilities denominated in foreign currency (U.S. dollars) is shown
below:
2017 2016
Euros (‘000) Non-current Current Non-current Current
ICO Line - 146 215 384
Total - 146 215 384
15.2 Derivatives and others - Loans and accounts payable
2017 2016
Euros (‘000) Non-current Current Non-current Current
Sundry accounts - 350 - 506
Staff (remuneration outstanding)
- 266 - 265
Other financial assets - - - -
Total - 616 - 771
15.3 Information on average payment period to suppliers
The average payment period to suppliers during the year was 30.20 days (24.61 days in 2016).
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15.4 Classification by maturity date
The schedule of financial liabilities by maturity date is as follows:
2017
Euros (‘000) 2018 2019 2020 2021 Subsequent Years Total
Bank borrowings 216 - - - - 216
Trade accounts payable 350 - - - - 350
Personnel 266 - - - - 266
Other financial liabilities - - - - - -
Total 832 - - - - 832
2016
Euros (‘000) 2017 2018 2019 2020 Subsequent Years Total
Bank borrowings 431 215 - - - 646
Trade accounts payable 506 - - - - 506
Personnel 265 - - - - 265
Other financial liabilities - - - - - -
Total 1,202 215 0 0 0 1,417
16. Short-term Accrual Accounts
Current liabilities’ Section on the balance sheets dated 31st December 2017 and 2016 included an adjustment
entry for consultant fees charged to the Fund for Foreign Investment (FIEX), billed but not considered as having
been accrued during the year, in accordance with Provision Two of the Order issued by the Minister of the
Economy and Finance on 28th July 19991, also known as the "FIEX Rule".
1“...If at the end of each financial year, the expenses incurred by the manager of the Fund for Foreign Investment in the study and
tendering phase specified above amount to less than seventy-five (75) per cent of the sums accruing thereto for the respective
consultant fees laid down in paragraph 1.a above, fifty (50) per cent of this difference will be held in the fund manager's account
and used to pay fees accruing in subsequent financial years. The fund manager may receive no further sums for this item until
such surplus has been fully expended”.
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Activity Report 17
17. Tax Situation
The breakdown of tax payables on 31st December is shown below:
2017 2016
Euros (‘000) Non-current Current Non-current Current
Assets
Current Tax assets - - - -
Retentions and Payments - - - -
Value added tax - - - -
Others - - - -
Total - - - -
Liabilities
Current Tax Liabilities - 478 - 220
Social Security - 97 - 93
Value added tax - 115 - -
Withholdings - 109 - 214
Total - 799 - 527
According to the existing legislation, tax settlements cannot be regarded as conclusive until audited by the
tax authorities or until the obligation lapses, i.e., currently established in four years. The Company's books are
open to audit by tax authorities for the last four years in respect of all the taxes for which it is liable. Neither the
Company nor its tax advisers have identified any material contingencies that might, in the event of an audit,
induce conflicting interpretations of the provisions of tax law applicable to the Company's operation.
The result of such conflicting interpretations may be additional liabilities. That notwithstanding, on the grounds
of the available information, the analytical methodology applied and the specific counsel received, the Company
deems that if any such liabilities arose, they would not affect its financial statements in any significant way.
130
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17.1 Tax on earnings
The reconciliation between net revenues less expenses and the tax base (fiscal earnings) for the intent and
purposes of corporation tax is shown below:
Euros (‘000) 2017 2016
Earnings for the year 8,806 8,505
Corporation tax 3,583 3,038
Before tax earnings 12,389 11,543
Permanent differences - 3
Temporary differences treated as permanent, limited to period depreciation (70%)
(16) (15)
Capital reserve (*) (719) (1,045)
Temporary differences treated as permanent through losses, impairment and variations in operational provisions
2,677 1,666
Permanent differences for impairment of non-current assets held for sale
- -
Temporary differences treated as permanent through losses, impairment and variations in operational provisions
2,677 1,666
Taxable Income (Fiscal Balance) 14,331 12,152
Tax of 25% 3,583 3,038
Previous Adjustments - -
Tax on overseas Earnings 8 14
Retentions (8) (14)
Tax on earnings 3,583 3,038
(*) In compliance with the requirements of Article 25 of Law 27/2014 of 27th November, related to corporate income tax, with regard
to capital reserve, as indicated in Note 3, a provision is proposed as part of the distribution of profit for the year 2017 charged to the
positive results for the year amounting to 719,400.00 (1,045,261.46 euros in 2016) to the Capital Reserve. (Note 17).
The estimated corporation tax payable is given below:
Euros (’000) 2017 2016
Taxable Income (Fiscal Balance) 14,331 12,152
Corporate tax of 25% 3,583 3,038
Deductions (8) (14)
Payments (2,902) (2,583)
Retentions (195) (221)
Tax paid overseas - -
Corporation tax payable 478 220
131
Activity Report 17
18. Environmental Information
No significant assets were earmarked for environmental protection or improvement on 31st December 2017,
nor were any relevant expenses incurred under that item during the year.
No environment-related subsidies were received in 2017 and 2016.
19. Revenues and Expenses
19.1 Current operating revenue and accessories
This heading covers the financial revenues and fees earned by the company on the loans granted from its own
resources.
It also includes the fees earned for managing the FIEX and FONPYME funds, multilateral development
organisations' programmes and funds (see Note 1). Also, revenues from the management of the FOMIN fund
and EU-EIB operations and the analysis and operational reporting to FIEM are also included.
The itemised list of the interest and fees earned on the Company's own transactions and the fees calculated
for FIEX and FONPYME on the grounds of the provisions of the Order signed by the Minister of Economy and
Finance on 28th July 1999 is set out in the table below:
Euros (’000)
Concept Basis for calculation 2017 2016
COFIDES interest Financial revenues from interest on loans to companies 2,276 2,253
Total Interest 2,276 2,253
Analysis fees 1.65% of the investment proposal submitted to FIEX 2,526 992
Formalisation fees 1% on investments drawn from FIEX and 1.5% on FONPYME financed investments
1,862 1,812
Outlay fees 1% of the sums actually laid out by FONPYME 140 170
Management fees 1.25% of the value of the FIEX live investment portfolio 8,743 8,798
Performance fees 20% of the dividends and other returns actually received by the funds
4,939 3,914
Settlement fees 1.5% of the value of the investment laid out and actually repaid to FIEX
1,733 1,577
Other COFIDES fees Fees other than the FIEX and FONPYME fund management fees
2,617 2,225
Total Fees 22,560 19,488
Total 24,836 21,741
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For an enhanced view of the business particulars and to optimise the analysis of its financial asset management,
the Company distinguishes between two types of revenues not explicitly addressed in the standard legal format
for presenting accounts: so-called recurring and non-recurring revenues.
Recurring revenues derive from the routine application of the financing agreements concluded; consequently,
exogenous factors bear only minimally on their generation.
In non-recurring revenues, by contrast, exogenous factors play a significant role both in their generation and in
their very existence, for the final decision is adopted not by the Company but by a third party.
Therefore, the income of the Company according to this classification system is distributed as follows:
Euros (‘000)
Concept 2017 2016
Recurring fees 21,194 19,410
Financial revenues from interest on loans to companies 2,276 2,253
TOTAL RECURRING FEES 23,470 21,663
Non-recurring fees 1,366 78
TOTAL NON-RECURRING, ANTICIPATED FEES 1,366 78
TOTAL REVENUES 24,836 21,741
19.2 Staff expenses
Staff expenses are itemised below:
Euros (‘000) 2017 2016
Salaries and wages 4,229 3,995
Per diem paid to members of the Company's Board of Directors
100 103
Social security tax 949 882
Other personnel expenses 389 326
Total 5,667 5,306
133
Activity Report 17
19.3 External services and other taxes
The "External services" and "Other taxes" accounts are itemised below:
Euros (‘000) 2017 2016
Publicity, advertising and public relations 149 158
Leases 881 879
Repairs and upkeep 135 137
Independent professional services 1,047 1,075
Insurance premiums 42 65
Training costs 125 143
Travel expenses 229 276
Other expenses 493 400
Total 3,101 3,133
Taxes 112 104
Total 112 104
Total 3,213 3,237
Independent professional services, primarily covers external consultancy fees associated with projects
implemented by the Company in 2017 and 2016.
19.4 Financial revenues
This account primarily covers financial income accrued in 2017 and 2016 in relation to the income obtained
from the amounts kept in the Company's current accounts and the investments held to maturity by loans in
Public Treasury Bills and promissory notes held through maturity and other financial assets held in certificates
of deposit.
134
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20. Operations with Related Parties
The related parties with which the Company conducted business and the nature thereof are listed below:
Financial year 2016
Nature of the relationship
FIEX Fund managed by the Company
FONPYME Fund managed by the Company
Official Credit Institute (Instituto de Crédito Oficial)
Company shareholder
Senior management: Board members
Chairman
General Manager
Financial year 2017
Nature of the relationship
FIEX Fund managed by the Company
FONPYME Fund managed by the Company
Official Credit Institute (Instituto de Crédito Oficial)
Company shareholder
Senior management: Board members
Chairman
General Manager
20.1 Related institutions
The balance of the accounts with related institutions is shown below:
2017
Euros (‘000)
Official Credit
Institute(ICO)
FIEX FONPYME CAF Total
ASSETS:
Long-term financial investments
Receivables Funds (Note 11.2.1) - 10,794 293
- 11,087
Trade and other receivables
Receivables Funds - 8,881 229 - 9,110
LIABILITIES:
Long-term payables
Short-term payables
Debts with financial institutions (Note 15.1) 147 - - 69 216
135
Activity Report 17
2016
Euros (‘000)
Official Credit
Institute (ICO)
FIEX FONPYME CAF Total
ASSETS:
Long-term financial investments
Receivables Funds (Note 11.2.1) - 9,685 266 - 9,951
Trade and other receivables
Receivables Funds - 992 91 - 1.083
LIABILITIES:
Long-term payables
Debts with financial institutions (Note 15.1)
215 - - - 215
Short-term payables - -
Debts with financial institutions (Note 15.1)
384 47 431
The operations with related institutions are itemised below:
2017
Euros (‘000)Official Credit
Institute (ICO)
FIEX FONPYME TOTAL
Net turnover - 19,290 654 19,944
Financial expenses
Payable to financial institutions (9) - - (9)
(9) 19,290 654 19,935
2016
Euros (‘000)Official Credit
Institute (ICO)
FIEX FONPYME TOTAL
Net turnover - 16,557 706 17,263
Financial expenses
Payable to financial institutions (15) - - (15)
136
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20.2 Directors and senior management
During the year ending on 31st December 2017, the Company's directors received remuneration in the form of
per diem for a total of €100,000 (€103,000 in 2016).
For the purposes of information only, the following table lists the total remuneration received by the Company's
senior management, with the exception of the directors mentioned in the preceding paragraph:
Euros (‘000) Salaries Other remuneration
Financial year Fixed Variable Benefits Others
2017 218 59 - -
2016 215 58 - -
The books showed no advances or loans to any of its directors or managers on 31st December 2017 or 2016, nor
had any obligations been assumed as security on their behalf. The Company has undertaken no pension or life
insurance obligations for any of its present or former directors.
The members of the COFIDES Board of Directors attest to their compliance with the provisions of Articles 229
and 230 of the Corporate Enterprises Act. Details on their shareholdings, positions or duties, on their own or
third-party behalf, in companies engaging in the same business as COFIDES are contained in Annex I hereto.
21. Information on Employees
The number of employees and directors of the Company in the last two years, by category, is as follows:
2017 2016
Directors 12 12
Senior + technical management 20 21
Technical team 49 47
Support staff 11 10
Total 92 90
*In 2017, the new employment contracts were completed under the protection of the fifteenth additional provision of Law 3/2017, of 27th June of the General State Budget for 2017. On the one hand, temporary contracts, in exceptional circumstances and to cover ur-gent and pressing needs, as is considered in point 1.3. On the other hand, indefinite contracts with a restriction of 100% of the replace-ment fee in accordance with point 1.5. In all cases, the previous authorisation of the Ministry of the Treasury and Public Administration has been taken into account, through the State Ministry of Budgets, Expenses and Public Administration and the majority shareholder as is prescribed in the cited additional provision.
137
Activity Report 17
The distribution of Company staff and directors by gender is as follows:
2017
Women Men TotalAverage numberof people with
disabilities > 33%
Directors 2 10 12 -
Senior + technical management 11 9 20 -
Technical team 31 18 49 1
Support staff 9 2 11 -
Staff on temporary leave - - - -
Total 53 39 92 1
2016
Women Men TotalAverage numberof people with
disabilities > 33%
Directors 2 10 12 -
Senior + technical management 11 10 21 -
Technical team 32 15 47 1
Support staff 8 2 10 -
Staff on temporary leave - - - -
Total 53 37 90 1
22. Auditors Fees
The fees paid for services rendered by the auditor amounted to:
Euros (‘000) 2017 2016
Auditing services 27.10 26.70
Other services - -
Total 27.10 26.70
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23. Events After the Reporting Period
No event worth mentioning that would have any material effect on the present financial statements was
forthcoming between 31st December 2016 and the date on which they were prepared by the Board of Directors.
ANNEX I
Details of shareholdings and positions in other companies of the Company Directorsat 31st December 2017
Directors Company No. of shares Holdings (%) Position and duties
Mr. Salvador Marín Hernández
Banco Santander, S.A. 766 < 0.005% -
CAM 825 < 0.005% -
Sabadell Garantía Extra 19 (Fondo Inversión)
436.89 < 0.005% -
Sabadell Garantía Extra 16 (Fondo Inversión)
500.89 < 0.005% -
Sabadell Plan Rend. Fijo 1001 519.9 < 0.005% -
Sabadell CAM - Partes Vinculadas
200 < 0.005% -
Mr. Óscar Vélez de Mendizabal Castillo
BBVA - - Director of Transformation
Mr. José Corral Vallespin Banco Santander, S.A. - <0.005% Head of SME Corporate & Institutional Banking Santander Spain
Banco Santander, S.A. - <0.005%
Mr. Miguel Darío Otero Romaní
- - -
Mr. Juan Ignacio Moratinos Alonso
- - -
Mr. Pablo de la Torre Rodriguez
- - -
Mr. Javier Estévez Zurita BBVA - - Director of Solutions and Business Transformation
Mr. Borja Rengifo Llorens - - -
Mrs. Amor Suárez Muñoz - - -
Mrs. Rosario Casero Echeverri - - -
Mr. Alberto Gómez Nicolau Banco Santander, S.A - <0.0001% Management systems responsible
Mr. David Noguera Ballús Banco Sabadell 57.192 <0.005% Assistant Manager Sabadell Corporate & Wholeshale Banking
Sabadell Corporate Finance, S.L. - - Chairman
139
Activity Report 17
ANNEX II
Details of shareholdings and positions in other companies of the Company Directorsat 31st December 2016
Directors Company No. of shares Holdings (%) Position and duties
Mr. Antonio Bandrés Cajal (Representative of Instituto de Crédito Oficial ICO)
ICO - - Head of Department for International Relations
AXIS - Associated parties - - Participated
2020 European Fund fo Energy, C.Ch.and Infrastructure SICAU-FIS
- - Management Board
Dª. Rosario Casero Echéverri - - - -
Mr. José Corral Vallespín Banco Santander S.A. - < 0.005% Deputy General Manager - Risk
Banco Santander S.A. (Options & performance shares)
- < 0.005% -
Banco Santander S.A. – Associated parties
- < 0.005% -
Mr. Javier Estévez Zurita BBVA - - Corporate and Institutional Finance Director
Mr. Alberto Gómez Nicolau Banco de Santander S.A. - <0.0001% Management control systems responsible
Mr. Roberto Pagán Díaz BBVA - - Business Director
Mr. David Noguera Ballús - - - -
Mr. Borja Rengifo Llorens - - - -
Mr. Pablo de la Torre Rodríguez - - - -
Mrs. Amor Suárez Muñoz - - - -
Mr. José Antonio Zamora Rodríguez
- - - -
Mr. Salvador Marín Hernández Banco Santander, S.A. 761 < 0.005% -
CAM 825 < 0.005% -
Sabadell Garantía Extra 19 (Investmen fund)
436.89 < 0.005% -
Sabadell Garantía Extra 16 (Investmen fund)
500.89 < 0.005% -
Sabadell Plan Rend. Fijo 1001 519.90 < 0.005%
Sabadell CAM - Associated parties
200 < 0.005% -
140
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Edited by:
Compañía Española de Financiación del Desarrollo, COFIDES, S.A., S.M.E.
Design: DCI Punto y Coma
Edition date: June 2018
Photographs: COFIDES graphic files
Photographs are provided by:
DeltacomGroup, page 44
Grupo Alantra, page 45
Gallizo, page 46
Globalvia, page 47
Grupo Truck & Wheel, page 48
Ibarmia, page 49
MMM, page 50
Netmind, page 51
SUPRACAFÉ, page 52
Tradebe, page 53
Compañía Española de Financiación del Desarrollo, COFIDES, S.A., S.M.E.
Paseo de la Castellana, 278 - 28046 Madrid
Phones: (+34) 91 562 60 08 - (+34) 91 745 44 80
Fax: (+34) 91 561 00 15
E-mail: [email protected]
www.cofides.es
2017